Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

William asks…

After the foreclosure process starts and you get current, does it stop?

I think I will be going into foreclosure here in a few weeks, but I know that in about about a month I will have enough to “catch up” with my payments. If I “catch up”, does it still keep heading to foreclosure?

Your Questions About Foreclosures

The Expert answers:

No, absolutely not. If you can make up the payments that you are behind, along with the extra interest, late fees, and other costs, then you won’t go into foreclosure.

The bank sues for foreclosure because you are in default of your agreement to make the mortgage payments. They sue to have the government sell the house out from under you to make good on your commitment to pay the loan or give them the property.

But if you aren’t in default any longer, then the bank has no reason to sue you. They aren’t suffering any damages, and you aren’t in breach of the contract if you pay them up to being current and they accept the money.

So, without you being behind on the mortgage, the bank can’t sue you to force the sheriff sale of the house to pay back the amounts that you are behind. Of course, that doesn’t stop fraudulent mortgage companies from doing exactly that, but that is not the majority of cases.

Good luck.
ForeclosureFish

Your Questions About Foreclosures

Steven asks…

Filing chapter 7 and surrendering home, can you help me understand foreclosure process?

We will be surrendering our home in our Chapter 7 bankruptcy due to my husband being unemployed, and we can not afford the house any longer. Our lawyer briefly explained the foreclosure prcoess to us, but my question is, do we have to go to court for the foreclosure as well? Or is everything taken care of through the bankruptcy?

Your Questions About Foreclosures

The Expert answers:

The chapter 7 and the foreclosure are two different things, even though they will interact and over lap with each other because of the bankruptcy. The foreclosure will run it’s course as well as your bankruptcy. Most of the things you want to accomplish will take place during your bankruptcy.

There are two type foreclosure procedures used in the United States

#1 Non-judicial Foreclosure- Your lender would file a “Notice of Foreclosure/Default with the county in which the property is located and the foreclosure will take place. You will be sent a copy of this notice as well as a copy will be placed on the property being foreclosed on. Once you have received this notice you then have 90 days in which to bring your foreclosure current. You current lender might entertain the idea of refinancing your mortgage during this stage.

Failure on your part to take any action to cure your foreclosure the lender would now file with the county a “Notice of Sale” again you will be mailed a copy and copies will be placed on the foreclosed property. A sale or auction date would be established by this notice.

Failure to act on this “Notice of Sale” will cause the lender to complete the foreclosure sale. The opening bid price on the property will be the balance of the loan plus any fees incurred during the foreclosure process.

Under this foreclosure procedure the lender will not come after you for any deficiency judgment or other property not listed on your loan docs when you signed for your loan. So any property your purchased before or after would not be affected.

This foreclosure procedure is used by the majority of lenders in the United States.

#2 Judicial foreclosure- Under this procedure the lender would partition a court to issue a foreclosure notice. You would be summon to appear in court to protect yourself from your property being foreclosed on. Under this procedure the lender could seek a judgment through the court for a deficiency judgment. Under this procedure you normally would have a right to redeem your property. This right of redemption could be anywhere from 30 days to 1 year depending on the state in which you reside.

Most lenders do not use this procedure of going through the court system. Going through the court system is long and time consuming, plus the right of redemption would keep them from selling the property until after all the legal action is complete

When you signed your loan docs the collateral for the loan you were getting was outlined. So if you own another home or house and it was not listed on your loan docs as collateral then the lender will not come after that property.

I hope this has been of some use to you, good luck.

“FIGHT ON”

Your Questions About Foreclosures

Charles asks…

What happens during the deed in lieu of foreclosure process?

Let’s say my short sale progam ends Nov 1. What will happen? Will the mortgage company set a date to meet to hand the keys over? How long will it take to hear something after Nov 1? How long should the whole process take?

Your Questions About Foreclosures

The Expert answers:

IT will totally depend on your lender and your situation. I have seen it go months after and I have seen it be almost immediate. I would recommend that if you have it with a realtor listed as a short sale that you keep it with the realtor as long as you can. Don’t just pull out Nov 1st. They may not get to you until mid month and that would just give you more time to hopefully get an offer. That is something that you could call and ask your institution but then again if you are further down on their list you don’t want to rush it. I would talk to your realtor and see if they, or if they know of anyone, who has worked with this lender before and see how long the process took for them.

Your Questions About Foreclosures

George asks…

Question about foreclosure process in Michigan?

has anyone recently done a foreclosure in Michigan? If so what did the process consist of, how long did it take, and what where the repercussions afterwards. I no longer live in the home and can no longer afford to keep it.

Your Questions About Foreclosures

The Expert answers:

I did a google search for ‘Foreclosure Laws Michigan’ and this came up: http://www.foreclosure.com/statelaw_MI.html

Looks like it has good information.

Your Questions About Foreclosures

Joseph asks…

Is it illegal for a landlord to collect rent money during a foreclosure process?

I live in Florida and am currently a tenant in an apartment complex. I’ve been renting there for 3 years. In January 2010, I was served with foreclosure papers which stated that the property is in foreclosure and that my landlord had 20 days to respond. He hasn’t paid the mortgage since June of 2009. Now, he is asking for this month’s rent. Is this illegal? Do I have to pay him rent while the property is being foreclosed on? Why should I pay him if HE isn’t paying?

Your Questions About Foreclosures

The Expert answers:

Of course it is legal, the two things are not related to each other at all. What he does with his income has no bearing on your rent at all, just like you spend your money as you see fit he has the same legal right. You do not have any rights to his money just because you do not approve of how he handles his income.

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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