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Foreclosure

My husband bought a condo a few years back. If we dont get a renter soon we will have to foreclose on the condo or short sale it.

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Question: My husband bought a condo (Interest only loan) a few years back before we got married. It is now worth less then half of its value, therefor we couldnt sell it, and was too small for us to live in it together. We ended up buying a second house together and was planning on renting out our condo. With our bad luck we have not been able to find a renter, so we have been paying on 2 mortgages. It is getting to the point where we can not afford both, and if we don’t get a renter soon we will have to foreclose on the condo or short sale it. My questions are as followed:
1. Will it affect my credit even though I didn’t purchase the condo or sign a contract. Only my husband did?
2. Can the bank go after us if we foreclose or short-sale? Can they take our current home?
3. Will we owe taxes on it and if so is there ways of reducing those or getting around them?
4. My parents co-signed on the new house, can this effect their credit, or can the bank go after them?
5. Lastly my husband has an HOA fee on the condo as well, can they come after us if we stop paying that? Can they garnish our wages.
Thank you for all of you help!!

Answer: –

1. It will only affect the credit of the person who’s name is on the loan, not the title. So in this case, your husband will be the only one who’s credit is affected if the property goes into foreclosure or short sale.

2. The bank can come after you (deficiency judgment) if you foreclosure or short sale…however they typically don’t. More than likely they will just 1099 you for the difference and count it as income. They can’t take your current home unless you pledged it as collateral in order to get the condo which you didn’t since you bought this home after the condo.

3. As for the taxes, yes you will most likely be given a 1099 for the loss which counts as income to you on your taxes. Depending on the situation, you may be able to use IRS form 982 which will counter act the 1099. You will need to discuss this with your accountant. As for property taxes, those will be taken care of either by the bank if they take back the home when it goes through foreclosure or even a short sale.

4. Because these are 2 separate transactions and homes, and was not used as collateral, they cannot do anything to your parents.

5. Yes, they could file a judgment against you as well…but more than likely they won’t.

My home is currently on (short) sale. I may be ultimately forced to file bankruptcy & foreclose on the house.

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Question: My home is currently on (short) sale since I can no longer afford it. I may be ultimately forced to file bankruptcy & foreclose on the house. My husband is not on the mortgage but he is on the deed. Will he become liable for paying the property taxes if I foreclose or file bankruptcy?

Answer: -If you go through foreclosure, and your lender ends up with the property, they will most likely pay the property taxes on the home if any are owed in order to try and sell it. If the short sale is approved, those taxes will be paid up as well because it will be part of the deal and the new owners will start paying the taxes from there.

what is strict foreclosure and how long i have to wait to purchase a home in the strict foreclosure process

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Question: what is strict foreclosure and how long i have to wait to purchase a home in the strict foreclosure process

Answer: -Strict Foreclosure is foreclosure without an auction. It’s basically where the lender obtains a court order to transfer title of the delinquent property back to them (the lender), without having to go through a foreclosure sale. Typically there is a redemption period that is set by the court so it really depends on what the court says as to when you can purchase a home in strict foreclosure.

A condominium has gone into foreclosure the lending company has it back.

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Question: A condominium has gone into foreclosure the lending company has it back. The condominium has a lien on
it the lien was filed against the original owner.
The owner is about to file bankruptcy. Does the lien
stay with the condominium? Can the association still
collect when the property is sold?

Answer: – The foreclosure auction will wipe out any junior liens that are attached to the property if they don’t protect their position. If a judgment or lien was filed against the homeowner, then it will stay with him unless he files bankruptcy, in which in most cases, liens and judgments are wiped out. So no, the association wouldn’t be able to collect. The only liens that don’t get wiped out are the property taxes and IRS tax liens. Those get paid first when the property is taken back by the bank.

Landlord is trying to collect the rent. Place is up for foreclosure. What should I do?

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Question: My landlord is trying to collect the rent for the month of september 2008 we had a letter put on our door telling us this place is up for foreclosure the auction will be held august 28 2008 i called and told him whats this about he said oh we already took care of all that but i keep calling the phone number thats on the paper all it say is that the auction date was changed to september 29 2008 when i called the place they said yes its up for auction the 29th of september i called a real estate attorney and asked him. He told me to give a 30 day notice and have him keep my deposit as last mouths rent. My landlord would not take my 30 day notice and also said that i must pay this mouths rent and that once i moved he will give me my deposit back. i also let him know of all the things that needed to be fixed from when we moved in not till after i told him about the foreclosure. he start saying oh as soon as they save the house there going to fix every litte thing not to worry and when i told him, well i’m just going to move. he said well you still owe me my rent. then why did i give first and last months rent when i moved in? then he had nothing to say to that all he did was to start threating me tell “you don’t want to mess with me i’ll take you down” also “i know how to take care of you if you don’t pay me my rent” and now today september 13,2008 he gives me a three day notice i just said ok thats fine here’s my 30 day notice that i’ll be moving “he says i don’t want that why would i want that you have three days to get out of my house i’ll be back thursday to make sure your out” i told him you still have to give me a 30 day notice all he said was “no you have three day thats all”. what could I do about this man because come thursday september 18,2008 i don’t know what he will do. will he follow thru the threats. so please help me as soon as possible. should i call the police or what should i do. i am worried i have a three year old litte girl also a 14 month old daughter with a seizure disorder that still dose not hold her head up or nothing she is like a new born chid still what if trys something and one them get hurt please help please

Answer: -listen, this sounds like more than just a rental issue. Clearly this landlords intentions are not good. It sounds like he has already spent your deposit and has no intentions on paying it back. He’s just trying to get as much money as he can from his tenants before they foreclose on the property. In many cases this can be considered ‘rent skimming’ which is illegal. This is where the landlord uses the rent money to pay for personal belongings and lets the property go into default. If he is giving you 3 days to vacate, I would get the heck out before something worse happens, especially if he is threatening you. Let him keep your deposit money a better place to live. And if you feel you need to contact the authorities, do it. Who knows, they may even help you find a better place. Good Luck

My husband passed away and left the house to me in his will…

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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.