Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Mandy asks…

How can I save my house from foreclosure once the bank starts the process?

We bought a house a couple years ago in Texas. We live in this house. We are self employed and the economy had hit us pretty hard. We have not made a house payment in five months. Money is starting to come in again and we can now afford the $1200 a month, but we can not afford the back debt.

We called our mortgage company (Suntrust) and they told us we had to talk to a loss mitigation counselor. We received a letter stating the house will be sold on January 7th. The loss mitigation people are telling us we have to wait for them to call us before they can help. They say it takes up to 30 days to receive a phone call. Well, if we wait for them to call, the house will already be sold at auction. What can we do? They will not talk to us at all. We do have a HUD backed loan. We have called Hope Now and that did not seem to help. HUD has a wealth of information online about reinstatement, forbearance, and repayment plan options. We can not contact anyone to help us try to qualify for these options.

If we can not reach loss mitigation, what are our other options? We received a couple letters from lawyers regarding bankruptcy. The letters mention chapter seven and eleven. If we can save our house with bankruptcy, what is the best way? Any ideas on how to get loss mitigation to grant us some extra time so we can work for them? Thank you for all your help.

Your Questions About Foreclosures

The Expert answers:

You may want to declare Chapter 7, but this means you would have to cease your business practices. Chapter 11, you can keep your business as long as you are able to arrange a payment plan for everything you owe. Many bankruptcy attorneys will do a free initial consultation and will advise you on which chapter to file and also WHEN. Timing is important. I lost my own small business last year and it saved us completely; just be sure you have some income you can live off of, even if it’s temporary or PT temporary. I gave up on my business and went back to working for others — you just can’t take risks now the way we could two years ago…Good luck!

PS – Bankruptcy does not ruin your rep forever; in about six months with hard work, you can restore your credit to something workable and also you will actually have an easier time getting people to lend to you once you’ve declared (since you can’t declare again for another 10 years and you have no current obligations post-discharge). Of course, try not to borrow too soon or else you may find yourself in the same hole, only with higher interest rates!

Your Questions About Foreclosures

Sandra asks…

Fannie Mae foreclosure purchase?

I am in the process of purchasing a foreclosure home that is owned by Fannie Mae. They have an item listed in their addendum that states the following:

“Grantee herein shall be prohibited from conveying captioned property to a bonafide purchaser for value for a sales price of greater than $150,000 for a period of 3 months from the date of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the principal amount of greater that $150,000 for a period of 3 motnhs from the date of this deed. This restriction shall terminate immediately upon conveyance at any forclosure sale related to a mortgage or deed of trust. ”

Can anyone explain this to me and put this in plain english terms. The home is in Texas if that makes any difference. Is there anyway around this clause?

Your Questions About Foreclosures

The Expert answers:

From my interpretation, sounds like it saying that you cannot sell the property for more than $150k before 3 months of the purchase and you cannot mortgage the property for more than $150k before 3 months. It is put into place to discourage “flipping” the house. I would advise speaking with an attorney for a exact interpretation.

Your Questions About Foreclosures

Betty asks…

Can I Refinance my Mobile Home Mortgage after almost 1 Year into my Chapter 13 Bankruptcy Case?

I have managed to fall behind another 3 months, now the mortgage company (WAMU), I’m not going to mention them by name, are trying to take me back to court and have the Motion for Relief to Stay lifted so that they can go ahead with starting Foreclosure procedures. I hear, in Texas, the whole process is usually done in about 3 months. Most cases dont even make it to the Judiscial level!

Your Questions About Foreclosures

The Expert answers:

Why don’t you start earning some money..
Get a room mate..to help with expenses
i have a tent..you can buy..or a cardboard box..for free.

Simply put… Where/what are you going to do if you don’t change this situation…
Live under a bridge in a cardboard box..
Move into a dumpster..

Your Questions About Foreclosures

Jenny asks…

What is a good bid on this property foreclosure?

I found a mobile home in the BOON DOCKS (aka BFE) of Texas on 10 acres. It is a foreclosed home and has been on MLS for 10 months with NO bids at all.

The property is $41,000.

Is there a bid that is “too low”? I mean could I throw out $7500 or $10,000 cash or would that just be kicked to the curb? Nobody has bid on this property a single time and I tell you it’s in the STYX. LOL.

I’m not real familiar with the bid process, so I’m just curious. It’s through the foreclosure site OCWEN.
Oh yeah, I forgot to mention, this is a bank owned home and they have had to pay property taxes on it for 2008 & 2009 because there are no back taxes. I just kind of wonder in this buyers market if you guys think they may be interested in “dumping” the house for a low ball bid.

Your Questions About Foreclosures

The Expert answers:

None of the information you gave us really says what it is worth. Except that it evidently is not worth $41,000 in its current condition.
The only way you could get a good idea of true value is to find similar properties that have recently sold. If you can not get that information from your real estate agent (maybe nothing out there has sold) then you will have to guess.
If you pay your own cash or borrow cash from some mortgage company or bank- it is always cash to the seller at closing unless they are willing to loan you the money themselves- and foreclosures usually don’t want to do that.
Offer what you hope is a low-ball offer and offer to close quickly and as is- but get a title policy so that you can be sure you are getting a clear and defend-able title and get a home inspection or at least get someone that knows about construction to walk thru there with you. If they turn you down and you think you offered a good offer- then wait a month and offer the same offer again. By the third or fourth time they may take you up on the offer.

Your Questions About Foreclosures

Michael asks…

Father died back in September and I have a question about his mortgage loan & personal question…..?

My father died back in September and the bank called in the mortgage loan he had on the house because he owed way more on the note than what the house/property is worth….

One of my questions is my half sister who my father left half the house to is claiming her attorney told her that by law the bank has to keep the insurance my father originally had when he first took out the loan that would pay off the loan if he died even if he were to miss payments(which he did–my brother had to force him into bankruptcy about ten years ago to pay off what he was behind or else we would have lost the house)because he said that is the LAW ever since banks started doing home mortgage loans in the late 1940’s/early 1950’s.

Then she said that her attorney said that since my dad was already a senior citizen when he took out the original loan with Washington Mutual, that his being a senior citizen also makes it LAW that the banks MUST carry the insurance to pay off the mortgage even if he misses payments.

THen she comes up with another story that her attorney said that when Obama had the new mortgage laws put into place, he also made it law that banks that made mortgage loans to senior citizens MUST pay for the insurance that pays off the loan even if they have missed payments and even if they die during length of the loan note or if a loan mod is in the works or even if they die while house is in process of foreclosure and hasnt been yet sold.

My brothther(the other person my dad left the house to)is done with the house and wants nothing more to do with the house and we are both in process of finding a new house to move into before the bank sends us the 30 days to vacate the house notice. My sister at first was going to move into another house with her boyfriend but now because of her attorney(who I think is giving her very bad advice and i think does not know anything about mortgage laws in Texas), she says she is not moving out because the house is paid off because(according to her attorney)and if the bank(CHASE now since WASHINGTON MUTUAL merged with them)does not have that “loan forgiveness” insurance(as I call it), then she is going to take the bank to court and sue them because her attorney said that when CHASE absorbed the note from WASHINGTON MUTUAL, by law that made it a new loan note and they had to pay for that “loan forgiveness” insurance to pay it off because he was a senior citizen.

This is causing me a lot of stress to where I have not been able to sleep good in the past three months(I am lucky to get two hours of solid sleep a night), has caused me to develop depression and aches, pains, migraine headaches, and has caused me to get sick a lot(all due to the stress of her not wanting to move out and fight the bank because of the wrong advice her lawyer is giving her).

She tried to get hold of my father’s entire loan portfolio from CHASE to show to her attorney so he can file court papers to sue them for not giving my father “loan forgiveness” insurance. I talked with the landlord who me and my brother may get a house from(owner finance low down cuz our credit scores are not great)cuz he used to work in a bank doing home mortgage loans and he said there is no such law(and hever has been one)that banks MUST carry “loan forgiveness” insurance on a senior citizen’s mortgage to pay it off when they die. He also said that when WAMU was still operating, they had the right to take away that “loan forgiveness” insurance because he missed 6 months of payments and when CHASE absorbed the note from WAMU’s files, they took it as it stood with WAMU with no “loan forgiveness” insurance AND that CHASE was under no obligation to offer my father “loan forgiveness” insurance AND that absorbing the note did not turn it into a “new” note(as my sister’s attorney claims)AND that when my dad went into bankruptcy to pay what he was behind with WAMU, the bankruptcy did NOT turn it into a new note(as my sister claims her attorney has also told her).

I am so stressed out with her crap that I am seriously thinking of sueing her in court for mental distress and anguish as well as sue her attorney for the same as well. Can I do that because as said, this mess she and her attorney has caused has made me to get sick a lot, lose sleep, and develop depression. Can I also report her attorney to the Texas Bar Association and ask his license to practice law be taken away? Also, can I, as my father’s LEGAL son(my dad only raised my half sister–ne NEVER adopted her)and co executor of the will(sister is other co exec)challenge the will in probate court and have her taken off as co exec and have her half of house taken away from her(father had depression and dementia at time new will was made which his military attorney was never informed of)so this mess can finaly end and I can move on?

If anyone who knows
If anyone who knows Texas State Mortgage Loan Law or is a real etate attorney in Texas reads this–PLEASE RESPOND and message me!!

Your Questions About Foreclosures

The Expert answers:

There is no law that an ancient and canceled insurance payment must pay. Once you stop paying your insurance you no longer have it, otherwise everyone would pay once in life and be done with it.

Obama also did not pass any free no pay insurance laws. There are no special laws for seniors, that would be illegal discrimination.

Loans are not new when they are sold.transferred from bank to bank. Again, that would be illegal and make it impossible for anyone to ever pay off a loan. Every loan would be new long before 30 years. You sister sound like she is talking to some whack job.

You are also correct, if this sister is his step daughter she is not really related to him at all. However, proving him incompetent when the will was drafted will be hard and sounds like there is no point, there is nothing to fight over.

This is all pretty simple though. Your father had debts, those debts have to be paid, no assets can be passed to anyone before the debts are paid.

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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