Question:

How does foreclosure affect my credit if a divorce follows?

My husband and I are looking at a possible foreclosure. He wants to give the house up. I want to keep it. We have enough money to make payments now, but he wont agree to pay the mortgage company. Our relationship is already on very shakey ground and in danger of collapse. My concern is if we split, how will a foreclosure affect my ability to find a place to live, get a job, buy a car, or just get credit? He is the one with the income, I have been a stay-at-home mom for 22 years.

Answer:

Basically, you and your husband are equally liable for any and all debts. In the same way, you are also both entitled to half of any and all assets. Putting this in mind, call a reputable broker or agent and ask for a CMA or Comparable Market analysis. Many brokers do this for free because they’re hoping that you would list with them. Secondly, call your bank, request for a “30 day pay-off and ask for a “hardship package”. You can let a knowledgeable agent do this for you or you do this yourself.

Negotiate with your bank or lender as soon as possible. Contact a bankruptcy attorney and even a divorce or family attorney for you confidential consultation. Your husband may be in shock once he learns that he may be “obligated” to pay you child support and a lot of other payments. The alimony he needs to pay may even be equal or more than the current house payment. Lastly, this payment should last for a certain period of time for you to get a job, learn a trade or enter other means in order for you to produce your own income. Remember that time is of the essence, so make it quick!

Question:

What does the sale date mean in foreclosure information?

Answer:

In a foreclosure process, there are several notices that you should be aware of. The first notice that you will receive is the foreclosure notice which serves as a sign that your house will undergo foreclosure. After receiving this notice, a court hearing will be scheduled. If you want to keep your home, attend the hearing and try to work out an agreement with the bank or lender in order for you to keep your home. If no agreement was made, the request for foreclosure will then be granted. After the grant, a notice of sale will be posted in the local newspaper and a copy of which will also be given to you.

The sale date in the notice gives the actual date of the foreclosure auction or sale wherein the foreclosed home or property will be sold. In this auction, the home is sold to the public and the party who gives the highest bid will get the property. After the auction, the new owners of the house can file an eviction notice so that the previous owners of the house will vacate the area. If you are a previous owner of a foreclosed house, ask a real estate attorney whether or not redemption rights are practiced in your state. This right will allow the homeowner to reacquire the property after the foreclosure sale once he pays all the original debt plus the interest and loan fees.

Question:

How long does a foreclosure take in Oregon?

Answer:

Usually, a foreclosure takes about 90 to 100 days if it is uncontested. However, if there are disputes or objections, it may take more than a hundred days to complete the foreclosure process. If the home owner is not able to make his payments for a consecutive duration of three months, foreclosure take place. The process usually starts with the homeowner receiving a notice of foreclosure.

If the homeowner is not able to work out an agreement with the lender for him to keep his home, a foreclosure sale or public auction is scheduled. During this event, the foreclosure home is sold to the public thru bidding. The one who bids the highest amount gets the foreclosed property or home. Ten days after the auction, the new owners of the home will already be allowed to move in their property.

However, if the previous owners of the home are still staying in the property, a notice of eviction is given. If the price of the winning bid cannot cover all the costs incurred by the bank or lender, the bank may file for a deficiency judgment wherein the previous owners of the house is obligated to pay a certain amount of debt. Some states also give redemption rights which allow the previous home owners to reacquire their homes after the auction. You may contact a real estate lawyer in your state to ask whether or not redemption rights are exercised there.

Question:

What happens to HELOC in a foreclosure?

Answer:

In 2008 – 2009, many people from all the economic backgrounds were affected by the recession in the housing industry. As grave as the effects of foreclosure may be, those who acquired HELOC or Home Equity Line of Credit Loan had more problems to deal with. HELOC loans are similar to second mortgages which are considered as subordinate loans. If a property is foreclosed on or sold through short sale, the primary lender is repaid before any other mortgage holder.

If the lender is not paid with the required amount on the first mortgage, the HELOC lender can garnish the wages of the borrowers. Or worse, the HELOC lender may put liens on their property for up to twenty (20) years to recover its money. Remember that this type of loans are secured against the equity of the home.

However, such loans are also considered as recourse loans, wherein the lender can oblige the borrower to pay even if the equity and the home itself are gone. Nevertheless, your primary mortgage holder and HELOC lender may negotiate in order to put your home up for short sale. In this type of sale, each party will receive a certain percentage of the proceeds and will “forgive” the remainder of the loan.

This agreement would be beneficial for both parties because it can save the primary mortgage holder from possible legal disputes involved in the foreclosure. In the same way, through short sale, the HELOC lender can get some of the percentage of the money owed.

Question:

Is there anything that can be done after foreclosure to keep your property?

Answer:

The foreclosure process starts with your receipt of a foreclosure notice. The way you respond to that notice most likely determines whether you are able to keep your property. There are some lenders who are very willing to work out an agreement with you in order to catch up on your payments. However, there are also some lenders who are strict enough not to bend any rules. In most states, the foreclosure is stopped once you are able to pay all your outstanding debt, in addition to the interest and loan fees. You may even find a lender who can refinance your home if you have enough equity on it. Once the lender pays your old loan, the process of foreclosure will stop. You may also stop an impending auction by declaring a bankruptcy status in accordance to some chapters of the law.

If you were not successful in keeping your home prior to the auction, you may still have a chance. Some states have redemption rights wherein the previous home owner can reacquire his home by paying all of the original debt, plus any additional loan fees and interest. However, there are only a few states giving this right. The bottom line is, once you receive the foreclosure notice, contact a real estate attorney. This lawyer will be able to give you viable options and help you determine the best course of action in order for you to keep your home.

Question:

What happens after a foreclosure auction?

Answer:

After the foreclosure auction takes place, there are several steps involved. Firstly, the money from the auction must be distributed to all the parties involves. According to the Foreclosure Workbook by Carla Douglin, the funds are to be dispersed, giving priority to property taxes payments, then mortgages and other creditors. If there is any surplus funds left, the amount should be returned to the borrower.

If the property is still occupied after the sale of the home, a notice of eviction is given to the previous owners. The new owners should wait fora certain period of time, which depends on the state, to file an eviction notice. If in any case the price of the winning bid during the auction cannot cover all the costs the bank or the lender has incurred, the bank may ask the court for a deficiency judgment.

Filing for a deficiency means that the original owners of the property still owes money to the bank or lender. Some states allow this to happen while some do not. Certain states also give an opportunity for the previous owners to purchase the home or property after the auction. This is called as the redemption period which is dependent on the rules set by each state.

Question:

What happens after a foreclosure notice?

Answer:

Most of the time, the bank that holds your mortgage will file a court claim once you have received a foreclosure notice. This claim requests the court to permit the bank to completely foreclose on your home or property. You will be given a notice stating the date of the upcoming court hearing. It is up to you if you want to attend the scheduled hearing. However, if you want to stop the foreclosure, attending the hearing with a legal representative is a must.

During the duration of the hearing, you and the bank that holds your mortgage may come up with an agreement in order to stop the foreclosure. However, if such agreement is not made, the court will grant the request for foreclosure. After the grant, the foreclosed home will be sold through any of the following ways. Most of the time, the foreclosed property is sold in a public auction.

The property may also be sold through the bank or by using a specialized realtor or agent. A notice of foreclosure sale, public auction or sheriff’s auction will be place in the local paper. After the property has been sold, the new owner will take the necessary legal steps for you to evict the property. If you do not want to evict the house, you may want to reach a rental agreement with the new owner. Remember that every state has a different way of handling foreclosure processes. This is just a general overview of the process so if you want to know the details of the process in your state, contact an attorney.

Question:

What happens after foreclosure in Maryland?

Answer:

Many states usually take 90 to 100 days in order to process an uncontested foreclosure. If there are disputes regarding the foreclosure of the home, it would take more than a hundred days. The home undergoing foreclosure is usually sold in a public auction or foreclosure sale.

The sale of the home usually takes place on the courthouse steps in the county where the property is located. After the sale of the home, you may file an objection if the sale was not properly conducted. Make sure to give your objections before the court ratifies the sale or it will be too late. Once the sale is ratified without any objection, the new owners of the property can petition the court to evict the tenants who are still remaining on the property.

Once the eviction takes place, the original lender is given a maximum of three (3) years to file a deficiency judgment on any debt owed, minus the proceeds from the foreclosure. Some of the states have a right of redemption law but Maryland does not have one. This law allows the previous home owner to reclaim the property once he or she has paid the full amount owed in addition to the loan fees.

Question:

How long did YOUR foreclosure process take?

I keep seeing how quickly it CAN happen, but from people I’ve spoken to, it’s taken longer. How long total, did you live in your house until you HAD to be out?

Answer:

Usually, the whole process begins when a borrower is behind his mortgage payments for a period of three months already. After three months of missed payments, the lender files for a foreclosure against the borrower. The borrower is given 90 days in order to prevent the foreclosure process by paying the total amount of debt. The foreclosure can also be settled if the borrower and lender works out and agreement or payment plan.

If the borrower was not able to make his payments current and if there was no agreement between the borrower and lender, a notice of sale will be issued. This notice is usually given 21 days prior to the actual schedule of the sale. The foreclosure sale is done thru auction so the highest bidder gets to own the property. After the auction, the ownership is also transferred to the new owner. And if the previous owner is still staying in the house after the auction, the new owner may file for an eviction process in order to legally remove the occupant from the property. In an over-all estimate, it would take at least 150 days or more before a borrower is legally removed from his foreclosed home.

Question:

What is the foreclosure process and how much time does it take?

I live in CA. And what about the short sale process, like how long does it take?

Answer:

A legal foreclosure process begins when the borrower receives a Notice of Default informing him that he is behind his mortgage payments and his property is soon to foreclose if the payments are not made current. After the borrower receives the notice, he is given 90 days to make his mortgage current. The borrower can work out an agreement with his lender in order to avoid the foreclosure from taking action.

There are several options that the borrower can consider such as refinancing, forebearance, home affordable modification, short sale and bankruptcy filing. With regards to short sale, the lender agrees to sell the property at a price near or equal to its fair market value. After the property is sold and the payment from the short sale is collected, the borrower will be relieved of all financial obligations pertaining to mortgage.

If no agreement was made though, a notice of sale will be issued, which contains the schedule of the sale of the property thru auction. This is usually given 21 days before the actual sale date. During the auction, the person who gives the highest bid will be able to get the right of ownership over the property. The new owner can then file for an eviction process so that the previous owner, if he is still staying in the house, is ordered to move out.