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Another Forclosure question- What should we expect?

I asked a question yesterday about our house going into forclosure and if there would be any way to keep it if we paid what we are behind. My husband and I talked with our mortgage company and it looks like there is not much we can do. We have decided to find a place to rent and we will hopefully be moving in November 5th. My question is what should we expect now? The letter stated that the house would be for sale at the courthouse on December 7th. What if it doesn't sell? What if it does? What would we owe? Anyone who has gone through this, will you please tell me about your experience? Thanks in Advance!


Asked by Anonymous at 10:21 AM on Oct. 21, 2010 in Money & Work

This question is closed.
Answers (10)
  • It depends on which type of mortgage you have. I think that an FHA loan forgives the debt. But the other types don't. I could be wrong so look around and ask.

    Anyway if they do come after you for the difference you can either work out a payment plan with them or offer to settle. Say you are $10,000 short when the house sells. You might be able to settle the debt with them by giving them a lump sum of $3000 or $4000. If you can't do that, you might be able to pay them $100 a month until the debt is gone.

    Also in some states some banks aren't going after the difference just because so many homes are foreclosing. Either way it's not the end of the world if you can't pay it right away.

    Sometimes the bank buys the home. But chances are good that it will sell. If you owe what it is worth, it would be very wise to put it up for sale and see if you can avoid foreclosure by selling it yourself.

    Good luck.

    Answer by Erica_Smerica at 10:41 PM on Oct. 21, 2010

  • I wouldn't worry to much about it.. Depending on your state all they can do is place a judgement against you for not paying IF they go that route.. It is considered a bad debt and will go against your credit just like the foreclosure will..

    Answer by midnightmoma at 10:40 AM on Oct. 21, 2010

  • How long would they give us to pay it off? Right now, we owe approx. $60,000 (not including lawyer fees). We have been told that it would probably sell anywhere from $40,000-$60,000.

    Comment by Anonymous (original poster) at 10:34 AM on Oct. 21, 2010

  • The best thing to do is call your your Mortgage Lender. They will know what will happen next. Sorry, about what you're going through.

    Best Wishes!!

    Answer by mommy2joeynabby at 11:14 AM on Oct. 21, 2010

  • Sorry to hear there is nothing you can do :(

    Answer by UpSheRises at 2:34 PM on Oct. 21, 2010

  • I don't know if this is true or not and have not been through a foreclosure, but I was told that they cannot force you out of your house without coming up with the original deed... Sorry if that's not very helpful. I'm really sorry to hear about your loss.

    Answer by figaro8895 at 5:54 PM on Oct. 21, 2010

  • Make them prove every bot they say you owe - I dealt with a crooked bank who virtually stole my house through foreclosure - stating we were behind on payments from the day they bought my loan from the original mortgage holder - and we were not ! This was back before the market crashed though and the banks really did want your house. I filed for bankruptcy 5 times in 4 years in order to stop them from foreclosing. The bankruptcy filing stops the sale immediately and then you get some time to research. Before I did that though, I spent a lot of time getting them to extend my time so that we could research things and see really where e stood - it took a lot of time and energy. I should have won, but I didn't because they really did WANT my house - it sold for $50,000 over what the bank said we owed (which was $100,000 more than we really did owe). Sorry you are going through this - it's not easy. Cont....

    Answer by JustMyOpinion22 at 5:33 AM on Oct. 22, 2010

  • If there is any way that you can increase your payments for a period of time to make up for what you are behind, the banks normally will go for that type of arrangement. The banks these days, in this economy, don't want your house - they will have a hard time selling it and getting what you owe them for it. Try talking to as many people as it takes - I had to do it all because my husband could be held up at gun-point over the phone - someone says they are going to foreclose on my house and he would say when. I fought it tooth and nail for 2 years before having to go the bankruptcy route, which then bought me 2 more years in the house. Not something I would ever want to repeat !!! We now make sure that any bills we owe can be paid with only one income - this all started when I got sick and lost my income. It took a lot, but we also used one of the bankruptcies to "get rid of" all of our credit cards and debt of that kind.

    Answer by JustMyOpinion22 at 5:37 AM on Oct. 22, 2010

  • Sorry so long of an answer - Anyway, it took us quite a bit of struggle, but we learned how not to use credit cards for anything, at all. We have not used them for 12 years. We do not owe anything to anyone, except for the new house we just bought a couple of months ago, and our monthly expenses of food, phone, utilities, that kind of stuff. If we don't have the cash, we don't buy something, plain and simple. We buy used cars without payments (we do save up for things like that, and are having to put money away for husband to get a new car sometime soon since his has almost 250,000 miles on it now). It's tough to learn, but easy once you do !! Good luck with the house issue - hope you get it resolved the way you want - fight to keep it if it is at all possible - tell the bank you are going to try to sell it yourselves - that sometimes will buy you some time before they foreclose too.

    Answer by JustMyOpinion22 at 5:41 AM on Oct. 22, 2010

  • You would owe what was left after it sold. Let's say you owe 130k and the house sold for 110k you would owe 20k.

    Answer by Iluvmy5 at 10:25 AM on Oct. 21, 2010