Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Lizzie asks…

What does this mean under tenant rights?

When property is sold in foreclosure

state law provides that a tenant in possession of a rental housing unit at the time a property is sold in foreclosure shall be given 60 days’ written notice to quit before the tenant may be removed from the property. *****However, if your lease was signed before the deed of trust or mortgage was recorded, your lease will not be set aside by the foreclosure.***** (what does this part mean?)

Your Questions About Foreclosures

The Expert answers:

WRG’s answer is correct, but I wanted to add that this law is now irrelevant. A federal law was signed last May that makes it so that leases always survive foreclosure and if you are on a month-to-month lease or one of a few exceptions apply, you have to be given 90 days notice before eviction can begin.

Your Questions About Foreclosures

Robert asks…

Child support lien in a foreclosure, attached to house or follow obligor?

I live in Florida. A few years ago, a child support lien was placed on my ex-husband’s home in Ohio for $20K (by the state due to my receiving public assistance). He shares the deed of that house with his second wife whom he is in the process of divorcing. The first mortgage is solely in her name ($75K), the second mortgage (HELOC) is in both names ($11K). No other liens/tax delinquencies exist. Total current obligations = $106K. Current short sale offer standing is $40K but cannot be actioned due to child support lien. His second wife filed for bankruptcy CH 7 in her current resident state of MI and has relinquished any and all claim to the home in their divorce settlement.

I have been advised that the child support takes precedence and the bank cannot foreclose, nor can the home be sold without first satisfying the child support lien. Further, I have been advised that the lien is “attached” to the house rather than the ex and will have to be paid by the 1st mortgage bank unless they choose to release the mortgage altogether, in which case I have no idea what would happen.

I was actually considering waiving the portion of back child support that is not claimed by the state to the extent that I can because of my role in the circumstances surrounding this situation. The ex has no property in his name nor income and if the lien follows him there would be no chance nor desire on my part to collect. Does anyone know if (1.) the lien is actually attached to the house? and (2.) may actually be paid by the bank?

Short sale offer of $40K was a miracle to begin with (by local neighborhood redevelopment nonprofit). To say house is even valued at $40K at this point is a long shot.

Your Questions About Foreclosures

The Expert answers:

A government loan would normally have to be satisfied prior to a mortgage or other lien against a property. That include such things as tax, child support liens.

The government is not asking the bank to pay the child support lien,they are saying that if the property is sold through any means, that the child support lien would take preference and paid first, and anything left could go toward paying any other lien against the property, with the first mortgage being the next in line.

In the event a sale of the property does not bring sufficient amount to pay the child support lien then any amount left would still be pursued by the county in which the child support is owed. By collecting a portion of the child support does not prevent the government from seeking the rest of the child support payment.

It matters not that you would want to waive any portion of the child support lien that you would get. These are funds paid on your exes behalf that he still owe on the unpaid balance of the child support.

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

“FIGHT ON”

Your Questions About Foreclosures

William asks…

House my daughter is moving into has note on door saying it has been winterized and do not turn on utilities?

With the economy the way it is my daughter’s family is going through a bunch of problems since they don’t own their home. In June (although they paid perfectly), the house they were living in was sold in a short sale so they had to move quickly. Then it’s happening again. SO they found another house to rent, in the same neighborhood and were set to move in this week-end. They have painted (with permission) all the walls and have moved a lot of their items to the new house. My daughter just went over there to finish painting and there was a not on the door stating the house has been winterized and not to turn on the utilities. She’s almost certain this means it has gone into foreclosure (THIRD HOUSE SINCE JUNE) so now, it’s Wednesday night and they have to be out of the house they are in by Sunday and probably have no place to go. Do they have any legal recourse? I know the say renters have very little rights but this is getting ridiculous. If THIS doesn’t convince them that they need to get themselves in a position to purchase a house in the future… I don’t know what will.

Your Questions About Foreclosures

The Expert answers:

Is your daughter trying to sign contracts at these places?
In the spring, a federal law was signed to protect renters during foreclosures. If there is a lease, the new “owner” (bank or whoever) is required to abide by the length of the lease.
If there is a month-to-month contract, the tenant has 90 days to move.

Your Questions About Foreclosures

David asks…

My question can be a little complicated?

I live in California. I know that CA is a recourse state. I’m aware of people (not me), who have a house & have been approved for a loan on another house, naturally by a different lender. It is my understanding that AFTER “they” move into this other house “they” will allow the “older” house to go into foreclosure. What are the ramifications of this practice? After all lenders are not stupid as somne people my think.

Your Questions About Foreclosures

The Expert answers:

Well, their credit goes into the toilet. Period. Even folks that have done the ‘Obama Refinace Deal” have noticed that NOW their credit scores are up to (and sometimes more) ONE HUNDRED POINTS LOWER. Gee, thanks for the help, US Government……….

Christopher K.

(I’m in California too, and LOTS of married people that the wife kept her maiden name are doing this IN CALIFORNIA,, not just other states………..)

Your Questions About Foreclosures

Paul asks…

House foreclosure question?

We sold a house to our child who is married. Our childs name and not their spouses is on the deed filed with county assessors office. Although, a sales contract was signed by us, our child and spouse. But, the contract did not state what would happen if payments are late or taxes not paid. Now they are divorceing. Their spouse removed everything expensive from the house and says verbally to our child, that our child will get the house, and all depts related to the houses repairs etc.and says they are putting it in the divorce papers.
Our Child,believing their spouse allows us to foreclose because they are 6 months behind on payments and cant pay upcoming taxes. Our child believes that we are within our rights to foreclose. After the fact, our childs spouse is contesting the foreclosure because they had no knowledge of it. Does anyone know if the forclosure is valid or not, because our child was the only one who signed the forclosure papers?

Your Questions About Foreclosures

The Expert answers:

You didn’t state where you are, but you need to let an attorney review the documents.

If you live in the US….
I spent 15 years in mortgage servicing, and I can tell you this much–you have to foreclose against all parties listed on the security instrument (they must be notified), rather they’re on the deed or not. And if this ‘security instrument’ did not state what would happen in the event that payments were not made, then it was very poorly drawn up and that will cause a problem. As I understand the situation (and again, not knowing where you live) I’d say chances are the spouse has a good case to contest the foreclosure–which doesn’t mean he/she can stop it, just that you’ll have to do it again correctly.

Again, you need to have a local attorney review all the documents and provide advice.

EDITED TO ADD THIS:

Did you actually foreclose or did the child just deed the property back to you? They are two different things. But even if the child just deeded the property back, there’s a good chance there may be repercussions. Even if the spouse’s name is not on the deed, if they acquired the home during the marriage, it was their martial home, the spouse contributed toward the payments, upkeep, etc, then the spouse is likely entitled to 50% of the equity (depends on state laws, but in most states that would hold true). Equity is value minus debt. So even if the payments were behind, there might still be equity. Of course in that case, that would be an issue your child (not you) will be dealing with in divorce court.

You really need to talk to a local attorney.

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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