cmfitness
Posts:122
 | | 02/28/2008 9:48 AM |
 Alert | I have a friend that can no longer afford to make payments on their second home in Rancho. No big surpirse there, but the renters moved out, so it is sitting empty. She has not yet defaulted, but cannot make the next payment. Right after the renters moved out, they left the valves to the washing machine open. When the water was turned back on in my friend's name, it flooded the whole house. This was a month ago. Emergency crews came in, dried the house, and threw away ruined carpet padding, drywall, etc. Then the adjuster came and gave the insurance company an estimate. I just spoke with the insurance company and they are cutting a check (minus deductible) directly to my friend. Now she has to look for her own repair crews to come in and fix the property. Here's my question: What happens if she does not get anything fixed? I know she is thinking that if she is going to lose the house anyway then why bother. I was surprised to learn that the insurance company was giving her a check instead of paying a repair crew. Is she setting herself up for bigger trouble? She can only keep the property if she taps the insurance money, as well, to make the mortgage payments, which puts her back to the issue of not getting the repairs done. Again, she has not yet missed a single payment. Any input would be greatly appreciated. | | | |
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beowulf
Posts:427
| | 02/28/2008 10:02 AM |
Alert |  tell her to spend it on cocaine and hookers that way after she blows it and her conscience is bothering her she can at least remember the good times! | | | |
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cmfitness
Posts:122
| | 02/28/2008 10:10 AM |
Alert | | If I told her that I would probably get slapped! She is devastated at losing the property. She doesn't drink, smoke or gamble, and she happens to be nearing 70 years old. She is an elderly lady that goes to church every week and always has a smile and kind word for everyone. I just want to help her avoid any bigger problems. | | | |
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OBG II
Posts:546
| | 02/28/2008 10:50 AM |
Alert | Looks like a lose lose situation: Keeps the money, bank forecloses and repairs the house; bank sells the house for whatever. if sold under mortgage balance, she is responsible for deficit plus selling costs, plus repair costs. Bank gets judgement and liens her own house for the judgement or goes after other assets. If she is married, they can go after her husbands assets as AZ is community property state. Has repairs done and tries to sell or rent house. Does not sell or rent. Bank forecloses anyway. See number one. | |
Some people will do anything to get elected!
IMPALIN' THE LEFT | |
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cmfitness
Posts:122
| | 02/28/2008 11:25 AM |
Alert | | She has been single for over 20 years. She really has no other assets. She owns another home in Rancho that she lives in, but is probably a bit upside down in that, considering the plunge in house prices and values. Other then owning her own car, she has nothing of real value left. Any suggestions on what she should do? | | | |
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Azgram01
Posts:283
| | 02/28/2008 11:26 AM |
Alert | I'm sure someone will correct me if I am wrong.....
If the house being foreclosed is her primary residence, in AZ they will not come after her for the deficiency (difference between selling price and amount owed) and if foreclosed by the end of 2009 she will not have to pay taxes on that amount (per the law Bush signed at the end of last year)......
so if that is the case, assuming she can make payments on one of the homes......perhaps she could make the payments on the rental house and let her current home foreclose, and move into the rental.
But...would suggest she see a Real Estate Attorney ASAP. | | | |
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cmfitness
Posts:122
| | 02/28/2008 11:30 AM |
Alert | | Can anyone recommend a good Real Estate Attorney? Should she see a bankruptcy lawyer? It's a sad situation because up until now she has had excellent credit. | | | |
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RichTig
Posts:0
| | 02/28/2008 11:49 AM |
Alert | Bad fires happen to good people. | | | |
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beowulf
Posts:427
| | 02/28/2008 12:03 PM |
Alert | | get an attorney i didn't know we were talking about the elderly here...PS there is no such thing as a good attorney | | | |
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OBG II
Posts:546
| | 02/28/2008 12:52 PM |
Alert | Howard Karman Casa Grande 520-836-8222 we used him for our closing on our house and as mortgage trustee; real satisified with his work. | |
Some people will do anything to get elected!
IMPALIN' THE LEFT | |
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LeonPotter
Posts:504
| | 02/28/2008 2:05 PM |
Alert | CMF,
Your friend isn't required to use the insurance money for anything. This payment was considered to get her back "whole". It's up to her what she does with it. As for a potential sale, any known damage must be disclosed. | |
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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cmfitness
Posts:122
| | 02/28/2008 2:17 PM |
Alert | | I know that the flood damage would have to be disclosed to a buyer, but in this case I guess it would be the bank. I guess at this point I just need to talk to a good lawyer on her behalf. Real Estate Lawyer or Bankruptcy, or both? I know nothing about foreclosures or anything, or what the process is. Maybe she would be better of filing for bankruptcy? | | | |
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LeonPotter
Posts:504
| | 02/28/2008 2:25 PM |
Alert | She hasn't defaulted correct? I would contact the lender(s) and give them the information of my position regarding ability to pay mortgage payments. See what happens from there. | |
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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OBG II
Posts:546
| | 02/28/2008 2:34 PM |
Alert | Bankruptcy is a long drawn out process and not everyone qualifies according to their income.- A good BK attorney...John J. Volin, 480-820-0800 near Warner and the 101; a relative used him and was very satisfied. Fee was $1500 | |
Some people will do anything to get elected!
IMPALIN' THE LEFT | |
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cmfitness
Posts:122
| | 02/28/2008 2:35 PM |
Alert | | No, she has not defaulted yet. She paid Feb payment. She did call the company two weeks ago, and she explained that she would not be able to make anymore payments due to the interest rate being too high. She was told that since her account was in good standing, they could not do anything to help her until she defaulted. | | | |
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LeonPotter
Posts:504
| | 02/28/2008 2:48 PM |
Alert | A few things: 1st. I wouldn't panic. There is time. 2nd. I would take a look at where I stand financially. My total financial picture. 3rd. I would consider all options available and potential outcomes. 4th. I would consider what I want to happen. 5th. I would give myself time to think it over.(sleep on it). | |
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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cmfitness
Posts:122
| | 02/28/2008 2:57 PM |
Alert | | I hear so many stories about people just "walking away" from their properties. I was surprised in this housing market, that her lender would not even try to help her before she defaults. She has no real income anymore, and her bank accounts are almost dry. What I think she would like to happen is to lose her rental property while trying to find a way not to totally trash her credit. | | | |
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alwaysamytoo
Posts:0
| | 02/29/2008 10:12 AM |
Alert | | Please check you PM's cmfitness. | | | |
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alwaysamytoo
Posts:0
| | 02/29/2008 10:13 AM |
Alert | double post | | | |
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JasonY
Posts:2417
| | 02/29/2008 11:37 AM |
Alert | | Selling at a slight loss would be better than bankruptcy if you can do it......... | |
"My favorite health club is the International House of Pancakes" -- Lewis Black | |
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