Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

David asks…

Can I get approved for the new Obama loan modification program while my house is listed for sale?

I will be applying for a wells fargo loan modification. I switched jobs about a year ago and make significantly less than when I purchased the home. Currently my monthly mortgage payment is much more than 31% of my gross income. Will I be denied because my house is listed for sale. The house is not in foreclosure. I know the question: “Is your house listed for sale or do you intend to sale your home?” is specifically asked in the wells fargo questionaire. What should I do?

Your Questions About Foreclosures

The Expert answers:

You can’t lie. Your house is for sale. If you apply for the refi and a buyer comes along you are screwed.
With a refi your principle, property tax and homeowners insurance are not reduced. Just the interest and a longer term. You do not realize much savings. It only pays if the rate is 2 points.

Your Questions About Foreclosures

Charles asks…

What happens when a house for sale goes into foreclosure?

My husband and I have been looking at a brand new custom home (it’s beautiful) in a new and developing community. The home was listed as a “short sale/awaiting foreclosure” but the real estate company was handling it and the signs were up in the front yard. What happens if the house goes into foreclosure? Does the price drop even more? Can it be bought at that point? It is a 450,000 home already marked down to 300,000. What do you all think?
No, we won’t work w/ a realtor. My dad will do all the negotiating. We honestly weren’t wanting to move so quickly but this is a phenomenal deal so far. I just wondered how much lower the price may go if it goes into foreclosure…

Your Questions About Foreclosures

The Expert answers:

Here is the situation. In foreclosure or in pre-foreclosure the property sells as it would as if the property were not in foreclosure. The reason it is a short sale is because most likely the property is worth less than they owe. This does not change when it goes into foreclosure. You can buy it for the $300K as long as the property reverts to the lender agrees. The way that they will agree is by having an appraisal done and seeing the value. They will not accept less than what the property is worth but they will accept less than they are owed especially because of the current circumstances in the housing market. So really there is no better time for you to buy it. If you wait for the foreclosure auction you could pay more, you could be out bid and most of all you would need all the money in cash as soon as you buy it. In some states you have a little more time but you still can not get a loan so go ahead and try to buy it before this gets too close to foreclosure.

Your Questions About Foreclosures

Mandy asks…

With all this house foreclosure one wonders how you can sell your house if you owe more.?

I’m sitting here wondering with all of these people losing their houses, can someone attempt to sale their house if they owe more that what they can get for it. How does that work? How do they work with the negative equity? Do they get some kind of unsecured loan or something? Or do they just end up losing their house in the end becuase they can ‘t sale for what they want?
How do homeowners usually make up the difference after the sle is done. Say 50K left over to pay how can the average person pay back a dept like that?

Your Questions About Foreclosures

The Expert answers:

It can be done. There are usually some negative consequences. The process is called a “short sale” or a “short pay sale”. The lender agrees to compromise the note rather than sell the property in foreclosure or take it back. This is done in the context of a real offer to purchase by a legitimate buyer and hardship petition by the seller to the lender. I handled one last year and the bank agreed to a discount of over $200,000 on their note. This was a case of extreme hardship due to medical problems and a house that was something of a “white elephant”. The debt forgiveness is usually a taxable event. The seller gets a 1099 form from the bank for the amount of the discount, just as if the money were paid. But the tax consequences are minor and deferred compared to the credit devastation caused by a foreclosure. Contact a reputable local Realtor to see is s/he will take it on as a short sale. Be honest about your situation. Also see my blog article on the subject
http://realinsight.blogspot.com/2007/02/short-sale-is-not-discounted-beach-wear.html

Your Questions About Foreclosures

Thomas asks…

The was a house for sale on my block they never sold the house it went into foreclosure,?

how long before the bank list the house for sale as a foreclose home?

Your Questions About Foreclosures

The Expert answers:

This is entirely up to the bank, you can however approach the bank and make an offer, it can be a low offer as they will probably not get much (of the original value) at foreclosure… Remember the bank is not in the business of realestate.. The property’s is costing them money… They will entertain any good offer. If they do not you can take your case to the local city counsel.

Your Questions About Foreclosures

James asks…

Foreclosure on house while its up for short sale?

My parents house is on short sale and they have one buyer, but the foreclosure letter came today and said that the house will be up for auction in nine days. Where do they go from there? Do they have to leave if the house technically is for sale? Also, there is one person who offered a price. Any info will help, thanks in advance.

Your Questions About Foreclosures

The Expert answers:

Being up for sale does not stop a foreclosure. The bank usually agrees to a time frame, usually 4 months when they originally agree to the short sale.

From the sounds of it they need to move out, the house will be REO in 9 days and they can not longer live there.

The offer made was only good for 72 hours, so it will also be void (expired) before the bank reclaims their property.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures