Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Sandra asks…

Home foreclosure and where does the bidding start?

Due to unfortunate circumstances my husband and I had to give up our family home. After trying to sell it, we were unable to in the time we needed to and had to let the home go into foreclosure.
What I would like to know is when a home goes to auction or a Sheriff’s Sale, what is the starting price? Is there guidelines as to where they can start the bidding as far as numbers go?

Your Questions About Foreclosures

The Expert answers:

If you had mortgage insurance it will become a HUD home. It usually takes about 3 months for a HUD home to come open for bids. As stated in another answer the asking price will be what is left on the mortgage. The bidding is open for 30 days and at the end of the 30 days the highest bid that is greater than 80% of the asking price wins the bid. If there are no bids that are at least 80% of the asking price the home is put on a daily bid list and will be sold to the highest bidder that meets the 80% rule.

Your Questions About Foreclosures

Michael asks…

Is foreclosure debt relief still taxed or not?

Recently, there was talk that the IRS was changing its rules so that debt relief experienced by persons who lost their homes to foreclosure would no longer be taxed. What’s the status on this rule change?

Your Questions About Foreclosures

The Expert answers:

Mortgage foreclosure is still considered to be taxable by the IRS.

Your Questions About Foreclosures

Mandy asks…

What is the difference buying a foreclosure home and a bankruptcy home?

Just like to see if the prices would be different? I know that foreclosure homes are cheap, but are the bankruptcy homes cheaper or?

Whats the catch?

Anything would be appreciated.

Thanks.

Your Questions About Foreclosures

The Expert answers:

The legal process to force the sale of the home is different, but the end result is the same. Both the lender (in a foreclosure) and the bankruptcy trustee (in a bankruptcy, obviously) want two things that are not compatible. First, they want to sell the home as quickly as possible, which means they have to sell at a discount. Second, they want to maximize the price for the home, which means they initially put the property up for sale at a price above what they are wiling to accept.

These homes eventually go cheaper than other homes in the community. However, people often “trash” homes when they go into either bankruptcy or foreclosure. Make sure any purchase contract you sign has a clause that says you can back-out of the contract if a certified home inspector says there is damage.

Your Questions About Foreclosures

Richard asks…

I am looking to buy a foreclosure. Where can I get a good report on the property?

I have been checking out some of the foreclosure websites to find a property. However, they give me limited information on the actual property. Where can I get a more detailed report?

Your Questions About Foreclosures

The Expert answers:

You aren’t going to find much, as the bank doe not report anything. If you want something solid you need to pay to have the property inspected.

Your Questions About Foreclosures

George asks…

How many months without payment before Foreclosure ? then how many months after foreclosure until evicted?

I live in a house where it might be facing foreclosure. I live with my uncle and his brother handle the finances. His brother is a liar and all the sudden says we are 4 months behind in payment and its going to be in foreclosure soon and after that it will be 30 days until evicted. Is that true?

Your Questions About Foreclosures

The Expert answers:

Each lender has it own foreclosure policy. Some lenders will foreclose immediatly after mising one single payment, while others will allow anywhere from 6-12 months before starting the foreclosure procedure.

They will send letters after letters seeking to find a way of bringing your mortgage current. Some will even call and see if there are ways for you to re-instate your mortgage.

The government loans might take awhile for the foreclosure procedure to take place also. These are your Va and FHA loans underwritten by the federal government. You also have some states that underwrite loans.

In a non-judicial state when ever the lender decide to start foreclosure procedures they will finally write a letter informing the borrower of this fact.

The foreclosure notice is filed with the county court’s recorder’s office where the property is located. Several copies are sent to the borrower or placed on the property.

From the time this notice is recorded the borrower then have 90 days to bring the mortgage current or refinance the mortgage.

Once this 90 day period is over the lender then decides when to send “The Notice of Sale”. This is also recorded at the county recorder’s office.

From the filing date the borrowers then have 20 days to complete a refinance or get out of foreclosure. The lender might refinane, but normally will not.

The sale is conducted on or after the 20th day.

Depending on what happen at the sale you will be notified of the new owner or someone from the lender will contact you to set up a date for you to move out of the property.

If the lender decide to use the judicial procedure then you will be given a court date to appear. The judge will outline the procedures to you but they will follow what your state has outlined. I am pretty sure you will have 90 days or more before you will be required to move.

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

“FIGHT ON”

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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