Dec
13
Could Someone Share Their Experiences With Foreclosure? How It Affect Their Lives?
ByI have read everything about avoiding foreclosure, but would like to hear from someone who has recently gone through it. There are so many homes in foreclosure that I feel like just letting mine go back, everyone else is. If my credit is ruined, then so is everyone else’s. Would the bank put leans on my other property and/or garnish wages? The stress and my health is not worth it. Thoughts?
3 Comments
December 13th, 2009 at 2:51 pm
Your credit score will drop to 600. You will not be able to buy a new car for 0% financing for many years.
If you remain in the house after the foreclosure date, the bank will evict you. That will make it hard to rent a home in the future. So avoid that scenario.
But watch out for one twist. Some banks are very slow about foreclosing. So you can not be in a hurry to move-out. Some banks are taking 2 years to take the house back. You need to stay in the house, in that case. If the house got vandalized while you still owned it, you could owe the bank for the damage. Stay until the very last minute.
If you have only the original mortgage(s) that you used to buy the house, the bank can take the house and nothing else (in most cases). If you put on a 2nd loan or refinanced your 1st, you are treated differently. The bank has the legal right to come after you for money they lose on your house. They seldom do this because you have no money to pay them…. but they could.
December 13th, 2009 at 5:31 pm
My mother and stepfather are currently going through it, because her and her husband lost their jobs and my stepfather has Muscular Dystrophy. Although I cannot say for myself I will say this. As far as I know they cannot garnish you wages, they just may pooh on your credit report and make it more difficult to rent or own, although in this market IDK if anyone will care if we get out of it.
My mother is very muched stress about the same thing and I will tell you the same thing I tell her.
Don’t stress it honey, It’s only life. Just breathe, it will be okay.
December 13th, 2009 at 8:57 pm
How badly do you want to keep the house ? That is the key question.
If you want to stay and you have income, there are options. I speak from experience. Our $3mil real estate business we built from scratch was wiped out when hurricane Katrina hit New Orleans. We spent over $200k servicing debt on vacant properties, while the insurance companies fought our claims (the city was under water for 3 weeks) forr over 2 yeasrs while we burned through our resources to do the “right thing”.
The most important thing to know is you have far more options that you think.
If you want to keep your house there are many options. It depends how much fight you have in you. As the homeowner you have many more rights than you think.
Not sure if you know this but Judge Boyko in Ohio in 07′ threw out 14 foreclosure cases for failure of the lender to bring forth the original “wet ink” signature note to foreclose.
Not sure if you know this but the lender can’t foreclose without the original note (not a copy). Most homeowners don’t know this.
We’re pursuing administrative remedies on 5 mortgages right now and there are a whole host of other options.
A loan mod (do it yourself or full serve), mortgage audit, foreclosure defense, admin remedies, etc are many options.
If you just walk, the foreclosure will be on credit report, but again if lender takes the house DEMAND the original wet ink signature note.
They can’t take the house and keep the note. Chances are they sold the note without your permission and have no grounds to foreclose.
Do a google search for “foreclosing without the original note” and search for “judge boyko ruling” and you will start to see as a homeowner you have a lot of options.
Once educated and your mind is stretched and you see the fraud the lenders perpetrate every day you may regain some energy to fight for your house.
If your all out of fight it’s best to not let it drag on and make preparations to hold on to all your cash, prreserve available capital and make arrangements to find new place to live.
Economy is going to get worse before it gets better (there are more A paper loans in default now than subprime) and there is a coming wave of commercial loan defaults next year. There is approx. $2.5B in commercial loans coming due.
So foreclosure isn’t the scarlet letter it used to be, yes your credit will be dinged, but it doesn’t define you as a person.
The banks have outposts in your mind to feel ashamed, despondent, depressed and want you to give up. That is an option.
But if you want to keep your home (for many rreasons) you do have options.
hope that helps.