Ughhh...foreclosure

[klmno]

I was aware of the short sale and that's my plan, but they told me I still have to have the house listed for fair market vakue for 90 days first- and there are 2 other houses for sale within a block of mine that have been on the market for several months. Now, one thing that seems to be in my faavor- given the circumstances- is that the balance on my primary mortgage is about 65% of the house value. I have a HELOC though, through another bank, that's about 21% of the house value. So, if the house sells at all (without forclosure), the primary mortgage would be paid for. My concern is that it won't get any offers at all.

I didn't already list it because I need to have an address in order for difficult child to get released to me. And, I need to get an answer about the HI job ASAP. But, maybe if I wait one week, then do something, it might prevent more trouble and gives the people in HI another week to make a decision.

Thanks for all this info, by the way- it is very helpful!

 

[Steely]

I don't know too much about foreclosure vs bankruptcy but I do know that there is a non-profit debt counseling service that can help give you free advice on debt, foreclosures, bankruptcies, etc. This is what I would trust over anything you get in the mail. They are called the National Consumer Credit Council.

 

[Mattsmom277]

The economy here sure hoovers indeed. I think we differ in that we didn't have the mortgage issues, due to our policies being so different. We aren't seeing the foreclosures to the level you all are.

Something about Canadians, somehow most people live oblivious to the reality of how hard the economy has been hit. Most tend to always believe the upswing is at hand, in spite of it not being hard to find the real numbers showing a decline all around.

Unemployment is as bad here as there. Certain industries that are vital to our economy and to survival have been hit very hard. Mining and all the companies that develop products for the industry have been slammed. My S/O was working in the industry and his company has been cut from a thriving large one, to a skeleton staff of under 10 people.

True to Canadian form, most employees were so certain that things would bounce right back. Here, employment insurance runs just under a year. Many of his company have already run out of benefits. We haven't seen many from his company lately so no clue how they are coping. I'm guessing in the new year, with no jobs forthcoming, we'll start hearing of massive home losses, bankruptcies etc. When we do run into people from his old job, most KEEP thinking "any time now" their jobs will be back. It is sad that we in Canada are complacent and it leads to a level of not living realistically. When S/O contacted his former boss to alert him that the military and government would be in contact as part of his screening for the Air Force, he was told that he is doing the right thing, that there is no way this company is bouncing back anytime soon and that his boss is saddened that employees aren't seeking new paths to employment, rather they sit and wait to be called back to a company that within a few months, shy of a miracle, will disolve after a very long history of being a strong employer.

I must say I'm glad that my S/O is a realist. When he initially was laid off, he was too optimistic. I was proactive and began studying news articles and reading the info to him. It helped him realize he had to find a different mind set and face up to the fact that we had to find a different path for him career wise. He decided on the military for the security it offers, not much in this country is secure at this point. And getting a foot in the door of a new career is next to impossible.

 

[LittleDudesMom]

k,

sorry you are going through this. There are two houses on our block that are on short sale, and both haven't moved, nor are they priced anywhere near what they are worth - which is the saddest part. These are houses that would have been worth 250 to 300K more just three years ago. One of the houses went down in price 30K in just the first two weeks - the family had a company come in and they had to sell some beautiful Virginia-made old family antiques. Very sad.

The problem with foreclosures and short sales in this economy - as opposed to five years ago say - is that houses just aren't selling.

The good news is that lower end homes in our area are on the move. Home sales in the 250k and under range have been going up the last few months. Good luck with whatever decision you make.

Sharon

 

[ML]

I don't have any more facts to share but I would say the hardest part about having a foreclosure would be buying another house. BR have become more and more commonplace and I was able to buy with a fairly decent interest rate a few years after my br in 2001. If there is any way you could sell it on your own that would be ideal. Otherwise my advice is to just let it go and move on. The next chapter of your life is going to be awesome. Good luck!

 

[Hound dog]

I didn't read all the post so if someone already answered this.......

Usually even in foreclosure you can stay in the house for up to 6 mos. It takes a while for that stuff to get thru the courts.

Have you tried calling the morgage co and asking for reduced payments due to your unemployment? Lots of co's are now doing this.....cuz they can't get rid of houses they foreclose on in this economy without a loss.

husband called ours. They won't do this unless you've missed 3 payments. How crazy is that??

 

[ctmom05]

At this point you have gotten lots of information about foreclosure issues. There are predatory companies out there, who are just looking for the opportunity to "help" you - beware; choose your course of action carefully.

 

[DaisyFace]

Ok, with Chapter 7, do you get to keep 1 car if it is already paid for or do they take it? (Not saying I would take it to HI, but just wondering.) Sorry- that part just come across clear to me.

K--

It depends on the exemption limit in your state and the value of the car. Somes states allow you to exempt one car up to a value of $3000, while other states place a limit on any vehicle exemption as low as $1200.

If you weren't going to pay to ship the car to HI anyway--sell it...walk away without any worries.

by the way--regarding the short sale option...short sales usually happen when you are "upside down" in your mortgage (the balance on the mortgage is higher than the home's current market value). These days, though, banks are getting tougher on their short sale policies and many times they are writing the deals so as to force homeowners to repay a portion of the bank's loss or disallowing the deal entirely.

If you can price your home ridiculously low (and yet "break even" on the sale) and get an offer before foreclosure--that might be your best bet! In this market, however, I'm not sure how realistic that plan might be.

Best of luck!

--DaisyFace

 

[DDD]

I think you are wise to chill for a little bit. Even though I have a real estate background I am not an expert in foreclosures...or the current manuverings in the market.

on the other hand, now you have the paper in your hand the reality of your financial issues probably has smacked you in the face. Chill. Don't start trying to jump through unfamiliar hoops. Bankrupcy is not something that you can
have happen right away.

Chart the times you know on a calendar. The HI dates (if that goes thru) the expected discharge dates for difficult child, the "next step" the mortgage company is stipulating. Get a good grasp of the time frames and then you will likely see that you have plenty of time in the house to meet your obligations for difficult child etc. It's really important that you don't make any new decisions when you are in a vulnerable state. Hugs. DDD

 

[GoingNorth]

When I went into foreclosure in my house several years ago, there was a minimum time period of 90 days before it went through a sherriff's sale.

That was mediated by law where i lived. In actuality it took more than 4 months. You can stay in the house until it goes to actual sale. Check the laws in your area on this.

This may have changed since as I know a lot of lending laws and the like have changed over the past few years.

Relax a bit. The notice of foreclosure is only the first step in a long process.

 

[klmno]

Thank you all so much for the support and information. Typically what I do when I see high-stress situations coming is to start looking at options and gathering as much info as I can so that once it actually "hits", I can make an informed decision instead of panicing because I have no clue what to do. I guess that's the way I'm trying to approach this , too. I figure I can gather more info this week, form a plan as best as possible if the job in HI doesn't come thru, and if I don't hear from HI within a week, start pursuing that plan. I'll try to pursue it in a way that allows me to still go to HI should they end up confirming the job. Of course, the hope is that they will give me a definite answer one way or another this week. I'm not holding my breath on that because they haven't sent me somewhere for a drug test yet and I'm concerned that they forgot it, then that will put things off another 2 weeks.

I've gotten things fairly well planned out- as much as possible- if I do get that job. If I don't, well, I wrote a list of "desparate actions" before and I'll have to expand on that and choose one. I keep hearing that the job market in my field probably won't pick up until at least next summer and that has me more worried than anything. And, I checked out the rankings of states as far as unemployment rates and states suffering the most and all the states around me are in worse shape than the one I'm in. That doesn't make me feel any better either. God bless those living in states in worse shape than this one- I don't know how some people are surviving

I'm mailing out a letter to Department of Juvenile Justice tomorrow to see if they will coordinate difficult child's release date with a move to HI, while I can still honestly say that I expect this to come thru soon. That way, I can get some possibility for it before I learn (if this happens) that it didn't come thru. Since I need a legitimate address in order for difficult child to be released to me, really my biggest fear is living in a shelter and not getting custody of him back. The second worst is getting him back, then both of us having to live out of a shelter. Between that option and living with my mother, even temporarily, well, I don't know whhich one is worse and would be more damaging to difficult child.

 

[DDD]

Why not check into available rental properties so IF you are not in your home when difficult child gets out, you will be "home" at a new location? DDD

 

[klmno]

If I have a job, I will. That''s really what I was hoping for so I wouldn't have to lose and spend so much going to HI because I would prefer to stay in this region. But, if I don't have a job, I can't really commit to anything and am worried about spending my last dollars for a deposit and rent without having any job in sight, espically if a lease is involved.