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| | Author | Messages | |
regancolston1214
Posts:155
 | | 09/16/2007 6:56 PM |
 Alert | I am not quite sure what it means to foreclose on a home. I was under the understanding that it meant that you would give your home back to the bank. We are trying to make a decision on what to do about our home. My husband needs to change his current job before it kills him. He does not think that he will be able to find another job making what he makes now. With that being said, we would not be able to afford our current home. The homes on either side of me have gone into foreclosure and two more down the street from me. Plus my neighborhood is not even finished being built. We tried to refi a few months ago and was laughed at, stating that we have lost about 60,000 in our home. Any ideas or suggestions about our current situation?
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| | bstoneaz
Posts:404
| | 09/16/2007 7:50 PM |
Alert | There are several options other than forclosure which will not be as bad on your credit. First, talk to a Realtor about the market in your area, look into the possiblity of a short sale. A short sale is where you sell the house for less than you owe on it. The bank is going to look at your finances before they allow a short sale, so your husband will probably need to be in his new job before they will approve it. The positive is a short sale is not a forclosure and you can generally get into a house again fairly quickly (a couple of years), the downside is it does show on your credit as not paid in full AND technically you still owe the bank whatever the "short" of the loan balance is. Example: If you owe $250K and sell the house for $180K you technically still owe the bank $70K. Now, the bank may want you to pay it all back, some or none of it. You will be able to come to an agreement with the bank prior to closing on the sale so you will know the terms before you make a final decision.
The other option is deed-in-lieu, which you can only do if you have one mortgage on the home. So, if you got suckered into an 80/20 or any other variation of home loan which has two mortgages this is not an option. I am not entirely sure how this works, but I know you basically sign over the deed of your home to the banka nd walk away.
You can also lease the property out, but more than likely you will not be able to get enough rent to cover the mortgage.
And finally there is forclosure. You want to avoid this at all costs, but remember, you can always recover and it's happening to A LOT of people right now, so you're not alone. | |
Just the good ol' boys,
Never meanin' no harm,
Beats all you've ever saw, been in trouble with the law since the day they was born.
Straight'nin' the curve,
Flat'nin' the hills.
Someday the moutain might get 'em, but the law never will.
Makin' their way,
The only way they know how,
That's just a little bit more than the law will allow.
Just good ol' boys,
Wouldn't change if they could,
Fightin' the system like a true modern day Robin Hood. | |
|
| | garden glow
Posts:687
| | 09/16/2007 9:09 PM |
Alert | | Talk to your lender..make them aware of your situation... the worse thing you can do is fall behind on your payments and ignore them....with the current real estate market many banks are inundated with foreclosed properties and they really do not want to deal with them..yours just may work with you... | |
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|
| | vinny
Posts:629
| | 09/16/2007 9:34 PM |
Alert | i'm sure i'll be flamed, but tell hubby to put on his big boy undies and stay in the job that pays him enough to pay for the loan that you/he promised to repay.
if you do bail on your debt be prepared to never eat dinner without collection calls, never be able to buy a car on credit, only live in apartments and have a general overall hell with anything requireing credit for a long time. | |
Follow your bliss. Happiness is a conscious decision | |
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| | regancolston1214
Posts:155
| | 09/17/2007 7:27 AM |
Alert | Thank you all for your input. We have a lot to think about, and nothing is going to happen overnight.
AS for your comment Vinny, my husband has his "big boy undies" on. And this is only a thought. I have read your other posts to people, and you come off as a very insecure little man. You are very mean. As far as only living in apartments, you are totally off base. Do you look all over this forum just so you can spew your hate?
Well, I forgive you for your ignorance....God Bless! | | | |
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| | vinny
Posts:629
| | 09/17/2007 8:34 AM |
Alert | <div class='NTForums_Quote'>Posted By regancolston1214 on 09/17/2007 7:27 AM
Thank you all for your input. We have a lot to think about, and nothing is going to happen overnight.
AS for your comment Vinny, my husband has his "big boy undies" on. And this is only a thought. I have read your other posts to people, and you come off as a very insecure little man. You are very mean. As far as only living in apartments, you are totally off base. Do you look all over this forum just so you can spew your hate?
Well, I forgive you for your ignorance....God Bless!</div>
i'm far from insecure or little, but that's way off topic. i'm also not mean, i'm sorry i'm not coddling you and i'm telling you the truth. i'm sure you don't want to hear that.
you call me ignorant but lets run through the scenario you are considering.
you: hey, sir can i borrow some money to buy this house?
bank: ya, you can. just make sure you pay me back, i don't want the house.
you: ok, i promise to pay you back, i love this house and its going to only gain value.
*time passes*
you: hey mister lender, i know i promised to pay you back, but the house didn't gain value like i thought it would. Actually as of today its actually worth less than i bought it for. so i'm going to walk away so you can take the loss instead of me. I couldn't imagine losing that much money!! good luck with selling it mister lender, many of my neighbors did the same to you...
the default will stay on your credit rating for at least 7 years. you will be responsible for what ever amount is left on the loan after the house actually sells. no lender will allow you to purchase another house, car, tshirt etc on credit. your credit score will be extremely low, and anyone who is going to sell you anything or rent anything to you will indeed look at your credit score. if they feel you are a high risk of running out of them (because you ran out on a debt in the past) they will not extend credit to you or they can reject your application to rent.
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Follow your bliss. Happiness is a conscious decision | |
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|  | CYounghans
Posts:37
| | 09/17/2007 11:15 AM |
Alert | | I have been dealing in the foreclosure biz for years... and just so you know Arizona is NOT a deficency judgement state... which means that the lender will not come after you for the amount that is owed above and beyond what they sell it for. Also, most people are very understanding of your situation and although you may not be able to get a home loan right away after a few years (as long as the market becomes a little more friendly) you will be able to again. There are quite a few rental companies as well as home owners who will rent to someone with a foreclosure. I would recommend that if you have any credit cards or a car loan that you continue to make your payments on them to keep your score from hurting more. <img src='http://www.85239.com/desktopmodules/ntforums/images/emoticons/smile.gif' height='20' width='20' border='0' title='Smile' align='absmiddle'> | |
Formerly CourtneyHannon...... | |
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| | lady k
Posts:26
| | 09/17/2007 3:04 PM |
Alert | | Thank you cyounghans for being so nice and offering some really helpful advice. I get tired of people on this site being so critical of others. I do understand that when you buy a house you are making a financial committment and you should know what you can afford and cannot afford. However, people can and do get faced with situations that are beyond their control. Foreclosure is not the best outcome but it is sometimes the only alternative. I wish regancolston1214 and all others who are faced with foreclosure all of the best. For the rest of us, let us be thankful for what we have and hope and pray we never have to face something like losing our home. | | | |
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| | LeonPotter
Posts:417
| | 09/18/2007 6:53 AM |
Alert | I believe something isn't getting lost from the OP's intent. I believe the question the OP had was "How does forclosure work?". By reading the OP's comments it didn't seem like their was any hint of foreclosure even beginning. The OP simply stated that her spouse was considering a relocation of job/career. It looks to me like they are finding out information and considering all options BEFORE they make any act. I believe this is a prudent thing to do.
Criticizing someone for merely asking a question is the reason why many people are afraid to ask questions. That is dangerous in itself. Oddly, the poster who was critical understood the situation more than those who weren't critical. Most concluded that a foreclosure was imminent while the harshest person suggested that her husband "stick it out"(my words). | |
You may remember this from the original 85239:
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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| | CYounghans
Posts:37
| | 09/18/2007 10:27 AM |
Alert | http://www.foreclosure.com/statelaw_AZ.html
Here is a great web site to see about the foreclosure proceedure here in AZ. If you have any questions about it you can ask me and I will break it down a little better but this gives you the time frames and a step by step guide on what to expect. | |
Formerly CourtneyHannon...... | |
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| | Tigg
Posts:549
| | 09/18/2007 5:47 PM |
Alert | A forclosure essentially the bank repossessing your house. They can't drive it away like they would a repossessed car, so they kick you out instead. It is not ever something you would choose to do and it isn't something that you would call the bank and say that you'd like to give the house back, so please do a forclosure.
While no option is good if you are unable to make your mortgage payment, forclosure is the worst option and it will reak havoc on your credit for years to come. Some of the other options that have been giving are far better options. You at least get the benefit of trying to work with the bank, where a forclosure puts you in opposite corners of the ring. Your first try should be to talk to someone at the bank and see if you can work out a re-fi for a longer term or some other sort of compromise that will help you to be able to keep your house and make payments you can manage. If that isn't possible, then a short sale would probably be your next best option. Your best bet is to first call the bank and let them know what's going on and that you want to work with them to come up with a reasonable solution. | | | |
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| | Marni
Posts:394
| | 09/18/2007 8:30 PM |
Alert | I say tough it out. You agreed to repay the loan. It seems that many people have lost personal responsibility. I am not trying to be mean.
I don't think you want bad credit because a job is stressful.
Credit can affect different aspects of your life. Credit checks can/are done for car insurance, employment, renting, buying, credit cards.
Many say that it shouldn't be fair to run a credit check for employment or insurance. How you manage your credit, is an indication on how you manage your life. | |
"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? ... That's interesting. I hadn't heard that." --George W. Bush, Washington, D.C., Feb. 28, 2008 | |
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| | LeonPotter
Posts:417
| | 09/18/2007 8:31 PM |
Alert | My feeling is to repay an obligation to the best of my ability. Since a lender gave me money on terms that I agree to. It's up to to uphold my end of the deal. But,that is me. I pay because I choose to do so.However, if someone doesn't pay, even by choice if they have the ability, that is their right to do so,too.The credit score isn't the end all be all unless one wants it to be.
The lender lends money knowing that some will default. That is the risk they take for doing so. Even ones(borrowers) who may have had the best record can have "life" happen and things can go in a different direction. | |
You may remember this from the original 85239:
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
|
| | Marni
Posts:394
| | 09/18/2007 8:49 PM |
Alert | The lender lends money knowing that some will default. That is the risk they take for doing so. Even ones(borrowers) who may have had the best record can have "life" happen and things can go in a different direction.
Yes life does indeed happen.
Some will default, it seems right now that many are defaulting. Many are defaulting because of ARM's. Some will blame the lender, some will blame the borrower. I blame the borrower for wanting a smaller payment, a bigger home, and the idea that the home will continue to go up in value. We as consumers and borrowers have to do our homework and think for ourselves. We had to look towards the future, not in the now. Now we have the lenders, homeowners, and the government on a scramble to figure this mess out. I can almost guess that the those who were responsible and did the homework will help pick up the bill on this mess that the housing industry is in.
This situation is not directed to the OP  | |
"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? ... That's interesting. I hadn't heard that." --George W. Bush, Washington, D.C., Feb. 28, 2008 | |
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| | bmaiken
Posts:23
| | 09/19/2007 6:44 AM |
Alert | | You can also contact your lender and try to do a work around program. Some lenders are doing those now, and can let you know what steps you would need to take to qualify. It is difficult to sell in Maricopa currently, especially when you can purchase a new build for so little why buy a resale? That is the competition we are all feeling as well as the many foreclosures and homes sold at auction. (side note I am an REO/Foreclosure specialist) | |
Brenda M Aiken
Mom, Realtor, Navy Wife
Currently missing her soldier | |
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| | regancolston1214
Posts:155
| | 09/19/2007 10:10 AM |
Alert | I was merely asking what foreclosure was. I have heard so many people talk about their homes being in foreclosure. We did do our homework before we bought our home, and we did not get more home than we can afford. We are very responsible with our lives, and have never been behind on our mortgage payments. We tried to refinance, but was laughed at because our home lost a lot of value. I love my home, and do not want to lose it. Whatever we as a family decide to do, is our decision and we should not be judged. Sometimes unforeseen events happen in people's lives that is only in God's control. If we were meant to stay here in Maricopa He willl tell us. I understand that quite a few people got "in over theirs heads," so to speak.
Marni, I wish it was as easy as just the job being "stressful" the job almost killed him. I know that you are not directing any of your comments to me personally. I loved the small town feel and charm of Maricopa in the begining, but now people have been so judgemental and mean. | | | |
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| | maricopares1
Posts:6
| | 09/19/2007 2:27 PM |
Alert | | I would speak with your lender. They may be able to help... I understand jobs can be stressful but this market will be turning around and you may have to wait a year or so but you may be able to move without foreclosing. Talk to the bank | | | |
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| | Tigg
Posts:549
| | 09/19/2007 7:11 PM |
Alert | Posted By regancolston1214 on 09/19/2007 10:10 AM
I was merely asking what foreclosure was. I have heard so many people talk about their homes being in foreclosure. We did do our homework before we bought our home, and we did not get more home than we can afford. We are very responsible with our lives, and have never been behind on our mortgage payments. We tried to refinance, but was laughed at because our home lost a lot of value. I love my home, and do not want to lose it. Whatever we as a family decide to do, is our decision and we should not be judged. Sometimes unforeseen events happen in people's lives that is only in God's control. If we were meant to stay here in Maricopa He willl tell us. I understand that quite a few people got "in over theirs heads," so to speak.
Marni, I wish it was as easy as just the job being "stressful" the job almost killed him. I know that you are not directing any of your comments to me personally. I loved the small town feel and charm of Maricopa in the begining, but now people have been so judgemental and mean.
You're best option is to call the bank that holds your loan and explain your situation - let them know that you want to work out a plan that will allow you to keep your home and allow them to get their money they loaned you. Be prepaired to let them know what you expect your husbands new salary to be if/when he changes jobs and what you think you can manage to pay.
The bank would likely much rather work with you than fight you because in a forclosure, noone wins. The bank has to go through the expense to kick you out of the house, then resell it for whatever they can get for it. And you end up getting locked out (litterally) and that very well may be with all of your belongings inside and you on the outside. A forclosure is nothing any responsible person would 'choose' as a solution (it is sometimes unavoidable, but you want to avoid it if at all possible).
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| | bstoneaz
Posts:404
| | 09/19/2007 8:25 PM |
Alert | Brenda (bmaiken),
I suggest you step back to Realtor school and learn a thing or two before posting anything more on here. I have seen you give one piece of bad information after another, and bad attitude as well! If you were looking to gain business from posting on here I think you've done more harm than good.
Your information about having to pay Realtor fees out of pocket if someone decides to do a short sale is so off base you should have your license revoked for failing to protect the seller's (your client's) best interests. If a seller short sells their property the listing agent notes "seller to net zero" in the contracts. At that point the BANK will pay all Realtor commissions, although it may not be the customary six percent you are used to. On top of that, any good seller's agent will make sure the seller is never locked into paying any closing costs, warranties or repairs (out of pocket) if they are doing a short sale.
Also, the average time on the market in Maricopa is about 130 days, far less than the six to twelve months you suggest.
How can you call yourself an "REO/Foreclosure specialist" when you have only been a licensed Realtor in Arizona for 18 months and obviously know less than me, who has never been licensed. I guess you are a speialist when the market wants specialists, right? So when resales are the new hot commodity will you be a resale specialist? Then a new build specialist? | |
Just the good ol' boys,
Never meanin' no harm,
Beats all you've ever saw, been in trouble with the law since the day they was born.
Straight'nin' the curve,
Flat'nin' the hills.
Someday the moutain might get 'em, but the law never will.
Makin' their way,
The only way they know how,
That's just a little bit more than the law will allow.
Just good ol' boys,
Wouldn't change if they could,
Fightin' the system like a true modern day Robin Hood. | |
|
| | 06woman
Posts:356
| | 09/24/2007 2:54 PM |
Alert | The lenders aren't usually willing to make any arrangements unless the loan is in default. If your husband decides to find another job and it doesn't pay as well, I would put your house on the market as soon as possible at a price that would pay off your loan. Then you can at least show your lender that you made an attempt to sell it. If I would have known these things earlier or my situation hadn't changed so quickly, I might have been able to find a better remedy. You definitely want to avoid a foreclosure if it's possible and so does your lender(s).
bstoneaz is correct. The seller is to pay no closing costs and is to net zero. The buyer also agrees that it is up to the seller's lender or lenders and not the seller as to whether the offer is accepted. It takes longer to close, typically 6 weeks from what I am learning in my own experience. There is a negotiator that negotiates a settlement with the lenders and the best outcome if you have a good negotiator is that they will write the remaining balance off as a loss. Sometimes but not always, the lenders may agree not to send a 1099. | |
"Happiness is a journey...not a destination."
"The highest form of ignorance is to reject something you know nothing about." -
Dr. Wayne W. Dyer
This is my son and a Lake Erie sunset. July 8,2007
Senior Member
Posts: 2268
Joined: May 2006 | |
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