Foreclosure, how does it work?

[Connie]

I am new here and I have a question.
When the bank forecloses on your property how long do you have to be out. My Mother died and I am handling her estate. My lawyer said I am insolvent and not to pay any more payments. She had a building with 3 rentals and a house. I want to hold it as long as possible to let my renters stay long enough to save up to move. I have one month before they start proceedings. How long after that?

[KIWI]

take a seat connie, any one of a dozen self proclaimed financial wizards should be along shortly..... :roll:

I better smite -the- white out of ya "smite box"...... :smokin:

[lala]

This might be helpful :D

[offsite:1ilb6tkl]This can be tricky. First and foremost, as to the home itself, unless any of the kin were part of the original contract, then all her heirs are free from the property. So if it forecloses, the only one that owes on it is her. But since she is deceased (I'm sorry for your loss) no one pays. However, with that said, if she has any assets, that goes to the mortgage company to make up for any shortfall between the sell-price and the mortgage pay-off amount. So, if she was upside down on the loan, her assets will go to pay off this amount. This can be avoided if she had her assets transferred before her passing or if they're wrapped up in probate somehow. I would suggest talking to a probate lawyer in regards to any assets she left.

However, if she had no assets to speak of after passing, then the surviving family is safe from any collection efforts by the bank.
http://answers.yahoo.com/question/index?qid=20080505111239AAGjtX3[/offsite:1ilb6tkl]

[offsite:1ilb6tkl]He added, 'Once foreclosure begins, the only thing that will really stop it is money. What happens to most people is the summons is served on you, and you have 20 days to respond. Most people don't do anything. A default is entered unless an answer is filed.'

Several options for fighting foreclosure include negotiating with the lender. It could include refinancing — going to a different mortgage company to get a new loan to pay off the previous one — or forbearance, in which the mortgage company comes up with a new payment plan, giving the owner extra time to get money.

'When mortgage payments can't be made, refinancing is your first consideration,' Acosta said.

A loan modification allows the owner to keep the same loan but to change

its terms for lower monthly payments, a lower interest rate, or to ask the bank to write off charges made against the loan.

'The loan has to be rewritten so the payments become affordable, and this is a tough nut to crack,' Acosta said.

Other options include mediation — in which the owner and the bank ask a third party to negotiate an agreement between the two sides — and reinstatement, where the loan has gone into default but the mortgage company agrees to take it out of default, usually after a sizable payoff has been made.

'One of the things you can do is reinstatement,' Acosta said. 'People do have extra money sometimes and can borrow money from relatives or borrow it off their life insurance.'

Another option is to hold a short sale, a situation where the home is worth less than the amount of the mortgage, but the bank agrees to let it get sold for a lower amount and writes off the remaining debt.

'You have to convince the bank to take a haircut,' Acosta said.

Some people also turn to bankruptcy, but Acosta advised against it as a way to avoid foreclosure.[/offsite:1ilb6tkl]
http://www.theledger.com/article/20090809/REPORTER/908109954?Title=Lawyers-Don-t-Take-Foreclosure-Lying-Down

[mur]

Put the house up for sale, inform the bank of the circumstances.

They'll probably give you 6 months to a year....

There are other factors as well.....where as the bank settles for less than the full balance of the loan balance called a short sale.

I worked for banks in the mortgage biz for 13 years.

I now work at a law firm doing loan modifications to prevent foreclosures.

[Connie]

Thank you for the replies to my post.

I received a letter from the lawyer I was trying to hire today. She basically wrote me off, does not want me as a client. I wonder if I can get into legal difficulties if I just let the bank take it back and do nothing about my Moms bills. My Mom did have a piece of land paid for but she fell sick and died before she could put it into anybody's name, she told me in the hospital she had wanted to give me and my brother that land. I hate to think the bank will get that money and then take the property back and sell it and have that money as well. Because of my financial state, I don't think the bank will sell to me. Anybody want a good deal on a house and three apartments?

I will unfortunately be left homeless by all this and I am jobless as well. I want to keep this place as long as possible to give my renters time to save up. I am going to collect only what I need for their utilities and not charge rent. I feel bad for them, one of them has been there for twenty years, if I could find a buyer they could stay at least.

[boycotteverything]

Connie- just PM'd you Mur's latest email address. He's the person here with the most expertise in these things plus he's compassionate and kind. Let us know if he doesn't help you and we'll kill him slowly and without mercy.

[Lexion]

I kill with mercy.

Just saying.

[boycotteverything]

fuck it. as long as he's dead...

[hp]

Depending on the state and if/not if a will, the land might be inherited by you and/or your brother. Check into the laws of your state.

[mur]

I work at a National Law Firm preventing foreclosures and doing loan mods.

You've got time, but I would not wait till the last minute.

Pm me and I'll give you my phone number.