Question: I AN RENTING A HOME THAT’S IN FORECLOSURE. DO I PAY THE RENT TO THE LANDLORD?
Answer: – I would definitely talk to your landlord about it. He/She may have plans to reinstate the loan and you don’t want to risk being kicked out.
Foreclosure University – The Ultimate Investor Resource
I have a home equity line of credit. I can’t afford to make the payments. Can the lender foreclose?
Question: I have a home equity line of credit on my home in florida that I owe about $75,000 on. I owe about the same on my 1st mortgage that is with the same lender. If I can’t afford to make the payments on the line of credit but continue to make my 1st mortgage payments can the lender foreclose on my home?
Answer: – Yes, the 2nd can and most likely will foreclosure on your home, even if it’s the same lender because you are not meeting your obligation to them. It’s just a matter of time. You might try to do a Loan Modification especially if your 1st and 2nd mortgages are with the same lender
My husband passed away and left the house to me in his will…
Question: My husband passed away and left the house to me in his will, although I am nowhere on the loan or title. I was out of work and taking care of him for a year before he died, so I got behind on the mortgage following his death in May 2008. I have been trying since August of 2008 to work with the lender(Chase)to modify the loan and have since remarried and now able to make regular payments again. I only owe $74,000 on a house worth approx. $170,000, but am having a terrible time getting any response from Chase. I have worked with Hope Now and am supposedly being reviewed by Chase for a modification. I am terrified because a sale date has been set, and my husband and I only have fair credit scores, yet have a great L-to-V ratio and income (he is a retired officer, 100%disabled USAF)but can find NO ONE willing to refinance us. There has to be an answer to this – it’s a true hardship situation since it stemmed from my husbands death last year, but I don’t know where to find help. I’ve called everywhere I know!!! Please suggest help – I’m afraid to wait much longer or they may foreclose before I find help. Thank You!!
Answer: -Even with the auction date set, you still have some options…especially if there is equity in the home. At this point, time is your biggest enemy and since the auction date has been set you have no time to play around. Unfortunately, since your credit is not spectacular, it may be difficult at this point to refinance, especially if you can’t back it up with income. As for loan modifications, it’s definitely a great option, but you should have a back up plan also. Maybe your new husband is in a position to buy the property? Maybe you have close family members that would but it, just temporarily until you could buy it back from them. Whatever you do, don’t lose it to the bank because you’ll lose most of your equity if not all of it because the opening bid is only what you owe plus some fees. If someone bids more than that amount, that money goes right to you.
I have a home in WI that is still owned by my ex-husband and myself. It was in foreclosure and he filed bankruptcy.
Question: I have a home in WI that is still owned by my ex-husband and myself. It was in foreclosure and he filed bankruptcy, not sure what is happening now but we had a home equity line on the home, will I be required to pay that back or will the foreclosure take care of it?
Answer: -The bankruptcy will postpone the auction for approximately 2 months, then it will be released and the foreclosure process will pick up where it left off. If no one bids at the auction, the junior lien holders have the option of filing a deficiency judgment where they can come after you for the amount lost, or they can 1099 you for the amount they lost or they will do nothing.
I can manage my home equity line of credit but it will mature.
Question: I can manage my home equity line of credit but it will mature within the year and because things have tightened up so much and property values have dropped it is unlikely that I will get the financing again. What can I do. I cannot pay it off at this time.
Answer: -Right now there are lots of Loan Modifications going on. This is where the lender can modify the original loan terms to something that is more doable for you. You may want to check it out.
In Arizona I have come across lenders who talk homeowners into short selling their home vs. signing a deed in lieu.
Question: In Arizona I have come across lenders who talk homeowners into short selling their home vs. signing a deed in lieu. Why wouldn’t they want the deed in lieu? What’s in it for them if the homeowner does a short sale?
Answer: – With a short sale, the home gets sold even though they may take a larger loss upfront. With a deed in lieu, they take back the property, which looks bad on the books and now they have to find a buyer. In a market like this, they would much rather take a for sure sale and not have to worry about selling it some time in the future.