Anyone Know About Forclosures..?

AsSiMiLaTeD

And let's make sure we qualify the whole "It'll go off my credit in 10 years" thing.

Yes, I believe that it stops impacting your score after 7 years, but I don't know if it ever falls completely off your file. However, typically when you sign up for a home loan or even an apartment lease, you're required to indicate on the application if you've ever had a foreclosure or bankruptcy.

I don't know the official rules for how that answer is supposed to impact the results, but I've heard that answering 'yes' to that question alot of times gets you a bad answer.

Bottom line, this may not be something that impacts you for the next 7 years, it could affect the rest of your life...

Maybe someone can clear that up better...or tell you if everything I just said is BS, but that's how I understand it.

markmarc

Darla:
Step one, get communication going with your lender. They are desperate to keep forclosures from happening right now. if this involves an adjustable rate going up even more important, that way you can qualify for the rescue plan announced yesterday.
Two, get a roommate, the rental income will give you some financial breathing room.
Third, any open joint credit cards, cancel or freeze them. Same goes with joint bank accounts. Start fresh if you haven't already.
Fourth, it's time for a lawyer. You have got to protect your future.
Remember, the whole foreclosure process doesn't happen overnight, you have time, do things each day and you should come out just fine.

shack

Polkmaniac wrote:

And let's make sure we qualify the whole "It'll go off my credit in 10 years" thing.

Yes, I believe that it stops impacting your score after 7 years, but I don't know if it ever falls completely off your file.

A bankruptcy will be completely removed from a credit bureau report after 10 years with no mention or reference and with no impact on your credit score. It is the law. A Chapter 7 Bankruptcy (liquidation and discharge) always stays on the report for 10 years. Most of the reporting agencies will drop a Chapter 13 Bankruptcy (restructure and discharge) after 7 years but it is not required by law. The seven years also has to do with how often you can file between bankruptcies. It still has an impact on your credit as long as it is being reported, up to 10 years

Polkmaniac wrote:

However, typically when you sign up for a home loan or even an apartment lease, you're required to indicate on the application if you've ever had a foreclosure or bankruptcy..

The questions are specific and not open ended. They will read "Have you been declared bankrupt in the last 7 years" or "Have you had property foreclosed or given title or deed in lieu thereof in the last 7 years?". So the answer is that once it is past the reporting period it legally should have no impact on your credit or ability to borrow or sign leases, ect.

TroyD

I'm telling you guys, when it comes to this stuff....Shack is like EF Hutton.

BDT

rskarvan

I think after 10 years of absolutely no payment activity, a debt becomes legally "un-collectable".

shack

TroyD wrote: »

I'm telling you guys, when it comes to this stuff....Shack is like EF Hutton.

BDT

Dang Troy....In the end, E.F. Hutton had lots of brokers that were corrupt and were nearly shut down by the SEC for lack of institutional control. In the mid 80s they pleaded guilty to 2000 charges of wire and mail fraud and paid $3,000,000 in fines and another $10,000,000 in restitution. They were allowed to merge with Shearson Lehman Brothers after 1987's "Black Monday" market crash, which later merged with Smith Barney and is now a part of Citigroup.


Am I that bad

(thanks though....I know what you mean)

TroyD

Well, you know what I meant....:D


BDT

SKsolutions

Shack and others have given good advice, but there are differences state to state. Contact the lender, get 3 independent market valuations, then go see a bankruptcy attorney with real estate experience. He will be able to best advise you. In my experience, every foreclosure is different, and the lender will get what it thinks it can from you, if you present a profile that is vulnerable to collection. Your liability may not only limited to just the deficiency, but can include the escalation of the full note due immediately, with interest, AND attorneys fees if they choose to go that route. Be informed, don't assume anything, see an attorney after you do some of the legwork.


Here's a link:http://www.bankruptcyorlando.com/2007/09/suits-under-mor.html

shack

rskarvan wrote:

I think after 10 years of absolutely no payment activity, a debt becomes legally "un-collectable".

Not necessarily. It varies by state and type of debt with a few states as low as 3 years and a few as high as 15 years. That is the DEBT statute of limitaions and the clock starts after no activiy (which can include payments, extenitons, etc...) If the lender obtains a default judgement the clock starts again and the period that the judgement is collectable also varies by state and can be as short as 3 years (D.C) or as long as NO limit (Delaware).

wingnut4772

Ricardo wrote: »

I guess part of the problem is that there's two names in the title, and any change will have to be agreed by the ex...right?

Yes.

Ricardo

I don't see other viable option than reaching some kind of agreement with her. I know this might be a tough choice, but I'm sure that in the end she doesn't want her credit to go down the toilet. Not paying her part might be a strategy to make you come back, but unfortunately I cannot think of any way of approaching this different than agreeing with her to sell....

rskarvan

shack wrote: »

Not necessarily. It varies by state and type of debt with a few states as low as 3 years and a few as high as 15 years. That is the DEBT statute of limitaions and the clock starts after no activiy (which can include payments, extenitons, etc...) If the lender obtains a default judgement the clock starts again and the period that the judgement is collectable also varies by state and can be as short as 3 years (D.C) or as long as NO limit (Delaware).

Maybe EF Hutton was a bad example. I'm thinking Shack words have darn near the same impact as Greenspan's.

rskarvan

Ricardo wrote: »

I don't see other viable option than reaching some kind of agreement with her. I know this might be a tough choice, but I'm sure that in the end she doesn't want her credit to go down the toilet. Not paying her part might be a strategy to make you come back, but unfortunately I cannot think of any way of approaching this different than agreeing with her to sell....

I'm thinking this is where a lawyer may come in handy. A good/creative lawyer can figure out a way to beat the system and force the sale of the house. I'm not a lawyer (and, don't play one on tv either)... but, I'm sure that this has happened to at least a dozen other people in Florida and there is legal precedent on how to force legal resolution to this issue so that the two parties can separate in peace. Otherwise, you risk a "war of the roses" scenario and everyone gets hurt.

sucks2beme

Putting on the "dad" hat.

Enough advice. Time for action. The laws vary. Rules change.
Go call a lawyer, or legal advisor at work.
Find out how to take control. Go to the lender and start talking.
Do it now. You have been fence sitting too long already.

"dad" mode off.

wingnut4772

sucks2beme wrote: »

Putting on the "dad" hat

Enough advice. Time for action. The laws vary. Rules change.
Go call a lawyer, or legal advisor at work.
Find out how to take control. Go to the lender and start talking.
Do it now. You have been fence sitting too long already.


"dad" mode off.

Thanks all. I do have an attorney. He is a friend and not a real estate atty though. Those cost money which I do not have.

Face

wingnut4772 wrote: »

Thanks all. I do have an attorney. He is a friend and not a real estate atty though. Those cost money which I do not have.

A guy I work with used a "friend" who also happened to be a real estate lawyer to handle his divorce. Needless to say, he got his **** kicked in court. Start selling off your gear in storage and get a real lawyer, it'll pay off in the long run.
I wish you the best of luck.

rskarvan

wingnut4772 wrote: »

Thanks all. I do have an attorney. He is a friend and not a real estate atty though. Those cost money which I do not have.

As long as your friend is legally retained to represent you. Make sure you get an invoice (even minimal) and write him a check so that he is on-the-hook legally to represent your interests.

shack

At this point you may need a lawyer to deal with your ex...but you aren't at a point to need one with the lender yet. Find out what they want before you start throwing lawyers at them. If you want them to just bow up...send in the lawyer...cause then they will refer to council...and then nothing will get done fast. Take it from experience...the minute a client walks into my office with an attorney on a problem...we're done. I let them talk to our lawyers.

wallstreet

I don't think you can just walk away scott free from a foreclosure with just "bad credit". The lender will come after you for all of the upside down money. So if you owe 200K and the bank sells it for 125K, guess what, you owe $75K. And they'll will have a judgement against you for that amount. So under no circumstances do you want the bank to sell your house.

Dennis Gardner

You will have to get a "dissolution of the partnership" declared by the court due to the relationship breakdown. This can force the sale of the home and her eviction if she can't buy you out.

Sell short if you have to in a soft market. You will need a realtor to give (ADOM) "average days on the market" reports and current inventory reports to sway the lendor into accepting a short sale. Once you prove the lendor is basically uncollateralized they may settle for the short sale, but do so only if they will guarantee no recourse on the remainder.

Its not fun, but letting it foreclose might be financial suicide...........

shack

wallstreet wrote:

So under no circumstances do you want the bank to sell your house.

The one circumstance is when you negotiate a Deed in Lieu of foreclosure. In the situration you describe, the bank may be willing to say they will take the house and value it at $125,000 and settle for another $10,000 or $25,000 or a number they feel you can reasonably pay. If it is true that you can't pay anywhere near the $75,000 shortfall (and you better be able to prove that) they will settle for some amount. They know if they push for it all, the borrower can always go the bankruptcy route and they get nothing. Be nice and they will usually work with you.

mrbigbluelight

Dennis Gardner wrote: »

You will have to get a "dissolution of the partnership" declared by the court due to the relationship breakdown. This can force the sale of the home and her eviction if she can't buy you out.

Sell short if you have to in a soft market. You will need a realtor to give (ADOM) "average days on the market" reports and current inventory reports to sway the lendor into accepting a short sale. Once you prove the lendor is basically uncollateralized they may settle for the short sale, but do so only if they will guarantee no recourse on the remainder.

Its not fun, but letting it foreclose might be financial suicide...........

Sounds like good advice.

Definitely get a lawyer.

Sell whatever you have that ain't nailed down, and retain a good one, not a "Brown and Croupen" TV-advertising ambulance chasing outfit.

Layman advice from me would be to speak to the lawyer about getting the process started to dissolve the relationship.
Also, find out from the lawyer what "good faith" measures you need to be doing to show a court later down the line that you have been acting in good faith as opposed to those actions that your ex- has been doing.

Reason ? Hopefully you'll be able to sue the ex- if she remains in her destructive ways. It would be my opinion that a lawyer would be able to find precedence for this type of action.

Make HER problem your financial gain (or at least minimize your loss).

Remember, the more sacrifices you make now, the quicker you'll be able to recover and recoup, both financially and mentally.

Polkersince85

IMO, foreclosure is the last thing you want to happen. Avoid it at all costs. The Feds at one time recently were talking about changing it but the IRS tax rules may come into play also. A home sold in foreclosure for less than amount owed and the bank forgives the differential is/was a forgiven loan subject to income tax. For instance a 200K loan sells at auction for 100K with 100K forgiven, Tax on the 100K would be owed to IRS. Someone else here or your attorney may know the most on this angle or recent changes in the rules.

This opinion is for entertainment purposes only and is not to be considered legal/financial advice.

tonyb

Take on some female roommates to get by,not a bed buddy.The market in Florida is so bad right now you can count on loosing money.A forclosure on your credit file will follow you for a long time.Basically,you have 2 options.Let it forclose,the easy button here.But the baggage will haunt you,not to mention the tax liability.Option 2,is finding someone to help with the rent untill the market comes back,may take a few years,and sell at minimal loss,or break even.Hopefully this will work out for ya,and next time Darla,be alittle more selective on your living partner.Ok,sorry....cheap shot...but had to take it..you know we love ya.:)

George Grand

I hate this ****. Do whatever Shack suggests cause he's clearly the man, and I sure hope you can get this stuff behind you.