Foreclosure question--UPDATE

[bill31]

Re: Foreclosure question

Re: Foreclosure question

Man, I hope you turn the corner on this. I think the laws are different from state to state, but I agree with most of whats already been said. They probably can sue you for the difference and force the sale of any assets but most likely will not unless your sitting on like a 30k or up toy. But really if you had somethin like that laying around i would assume you would allready be selling it to aid the situation. YOU HAVE GOT TO CHECK OUT DaveRamsey.com or see his show on fox business network every evening. Im sure he would say to prioritize your spending 1 food and shelter, 2 utilities and transportation, meaning dont pay a dime to those ccard until after you pay your hpayment. I hope im not overstepping my bounds but his methods of handleing money have changed our lives. its gods and grandma's ways. I hate that anyone who has served our country is going through something like this

 

[bisonfan]

Re: Foreclosure question

Re: Foreclosure question

We just missed our first payment and are being called 3-4 times a day.I informed the last person I talked to of how we started trying 3 months ago to get a reduction/modification started/set up and recently got the letter of non-qualification.

2 car payments total $400 per month.1 credit card balance less than $500.

I spent an hour with the loan officer at our local bank for information purposes and she steered me to the office of our County Community Action service where a counselor works with the mortgage company through the process of relief.After an interview and some forms to fill we will meet again on Monday to get the ball rolling.This will help immensely.

Now I am more hopeful of a good outcome.

Sorry to hear of your situation. You are doing the right actions to save your home. I spent 2.5 years in the home foreclosure prevention group at the Department of Veterans Affairs in St. Paul. The community Action group is great, you should be able to get some help. I would recommend this site to give you a guideline as to the foreclosure process in MN. http://www.realtytrac.com/foreclosure-laws/minnesota-foreclosure-laws.asp Each state has different laws regarding foreclosure. Missouri only takes 60 days to hold a sale. Illinois takes over a year...


If your home is a VA home loan they have a contact in St. Paul that can help you. PM me for a contact.

Loan modifications are possible but the loan to value ratio has to be great enough that amount you "roll into" your loan (or prinicipal balance) is under the value of your home... If the mortgage did complete a loan mod with the margins to close, it would only increase their loss exposure if the mortgage ended up in foreclosure in the near future (yes it happens!)

The one thing I would do is quit paying the credit card companies, they can't take a thing as it is all unsecured debt. The mortgage can take the house...

Mortgage companies could care less about personal property so if you have the ability to liquidate those assets it may be handy if the reason for your situation is short term... They only have the legal right to what is listed on the mortgage

Can you sell a vehicle for cash and buy a less expensive car to drive instead?

I would never recommend a bankruptcy to anybody but there are appriorate time and applications for them. There is a huge difference between a chapter 11 and a chapter 7 as a ch.11 requires a pay back plan that the creditors agree to instead of just wiping the debt.

NEVER pay somebody or organization to put a workout plan with your mortgage company together. They are a waste of valuable money as all mortgage companies have a loss mitigation department with the sole purpose of home retention.... these people work on your case for FREE!!!

Sorry this is overkill!

 

[roscoe]

Re: Foreclosure question

Re: Foreclosure question

Sorry to hear it Bart.
Regardless of what help you can get thru the local, state, and Fed agencies, Its time to make more changes if you can.
Like selling one of the vehicles to get out from under the payment, then buy the cheapest Escort or Neon you can find if you need a vehicle for job interviews.


Although we don't have to worry about the mortgage, we have fallen into some heavy debt over the last 18 months. New bride lost her job, her mother died leaving many expenses, wife got sick so unemployment won't pay, medical bills have been double in the last year than I have had in the last 45 years. Yeah, the Mayo clinic is expensive.

Our plan is to sell off as much crap as we can starting next week.
Some isn't worth much, but if we don't use it or need it, why keep it.
So we're selling 3 boats, 3 or 4 outboards, stereo, cd jukebox, computer, Ford Explorer, snowblower, maybe the atv, etc. May even end up selling the house and down grade, as we wanted to get out of our current home anyway, but that will likely be put off till next year.

What type of work are you in? blue collar? white collar?

 

[thefairlaneman]

Re: Foreclosure question

Re: Foreclosure question

I am begining to see that the deck is stacked against people who get older and have saved and bought many things they have wanted through the years. All it takes is one short visit to the ER and a person could be charged a 5 or 6 thousand doller bill or more and the hospital bill collectors have a legal right to take his home if he cant pay it. I believe when a person starts to get close to age 60 he should turn all assets into cash and stash it. If you rent and cant pay a bill (except the rent) they cant throw you out.

 

[DJ]

Re: Foreclosure question

Re: Foreclosure question

The IRS gets theirs too.

Any "shortfall" the bank sees in a foreclosure or shortsale is considered income. That is taxable.

 

[bryan01601]

Re: Foreclosure question

Re: Foreclosure question

Personally I would have sold all my toys before I let some bank foreclose on my home. Just my opinion.

 

[Summer Fun]

Re: Foreclosure question

Re: Foreclosure question

Boat sale will be LAST.

That would be the first thing to go. If foreclosure was happening to me.
I hope you find a way out of that mess.

 

[Bob_VT]

Re: Foreclosure question

Re: Foreclosure question

at the request of the original poster this thread is closed....

 

[Bob_VT]

Re: Foreclosure question

Re: Foreclosure question

and opened again

 

[Bart Sr.]

Re: Foreclosure question

Re: Foreclosure question

Well after several meetings,phone conversations and research we have a plan of action to avoid foreclosure.We will be giving up a lot more than we already have but we do what we gotta do.I won't go into details but everyone concerned is comfortable with the arrangements.

Thanks for all the advice and good wishes.

 

[tx1961whaler]

Re: Foreclosure question

Re: Foreclosure question

Sounds like you came to a good (OK, maybe tolerable...) arrangement. I hope everything works out for you. Things could be a heck of a lot worse!

 

[roscoe]

Re: Foreclosure question

Re: Foreclosure question

Hang in there, it'll either get better, or the rest of us will be joining you.

 

[marlboro180]

Re: Foreclosure question

Re: Foreclosure question

Good to hear that something has been worked out. Nothing like that feeling of relief after staring such impending doom in the face.

 

[Bucks45]

Re: Foreclosure question

Re: Foreclosure question

Good to hear! Sounds like you're getting back on track.

 

[eaglejim]

Re: Foreclosure question

Re: Foreclosure question

Glad you were able to work it out,they didn't want your house they most likely already have enough,hang tough things will get better

 

[NelsonQ]

Re: Foreclosure question

Re: Foreclosure question

Glad to see you have a plan forward. Wish you the best on getting things going in the right direction.

 

[JRJ]

Re: Foreclosure question

Re: Foreclosure question

Thanks for the update. Good luck.

 

[skargo]

Re: Foreclosure question

Re: Foreclosure question

Glad to hear you have a plan.

I buy foreclosed properties to add to my rental portfolio, people leave everything sometimes

 

[642mx]

Re: Foreclosure question

Re: Foreclosure question

Personally I would have sold all my toys before I let some bank foreclose on my home. Just my opinion.

+1. I would do the same thing.

 

[Bart Sr.]

Re: Foreclosure question

Re: Foreclosure question

Personally I would have sold all my toys before I let some bank foreclose on my home. Just my opinion.

+1. I would do the same thing.

Well after several meetings,phone conversations and research we have a plan of action to avoid foreclosure.We will be giving up a lot more than we already have but we do what we gotta do.I won't go into details but everyone concerned is comfortable with the arrangements.

Thanks for all the advice and good wishes.

We only have ONE toy left and that is a 17 year old boat that the wife refuses to sell.Which costs us a whopping $20 per month to keep.The only thing that has put us in ANY jeopardy is the lack of jobs for this "old fat guy".

Thanx again for all the great advice.