Case closed! Not as excited as most.

[Miknan]

Discharged in Nov, my case was closed today. The trustee had hired a law firm to supposedly attempt to set aside my mortgage but I noticed on Pacer that application to employ was terminated today also so I guess that's it. I had hoped the trustee and bank would of dragged this out for a year or two. I had surrendered my house so what should I expect now from Wells Fargo? Will I get some kind of notice in the mail for the sheriiff's sale? Is there any chance of trying to save my house now or am I better off just doing the land contract I have negotiated with a builder? I am behind about $8k and upside down about $10k but also have a HELOC we owed $24k. Thanks.

[tobee43]

according to Michigan foreclosure laws, the state uses two forms of foreclosures, namely the judicial and the non-judicial procedures...one take longer than the other. the judicial must go through the court system, while the other method works through the "system" much faster in most cases, not all.


when the lender uses the judicial method it could take a few years when they do not, it can be a matter of months. i would check your county's sheriff's site to see how quickly they are going. also, i don't how you can find out which is being used to handle your situation...judicial or non...it means time.

[Miknan]

Tobee, we are prepared to give a builder $40k to do a land contract. We got a letter from WF stating we have until 3/5/12 to pay $12k plus about $400 in late fees to stop "acceleration" to start foreclosure. In the months since discharge, living for free, and my wife amazingly approved for SSDI, I've saved almost $10k. I could pay WF that money and just stay and pay or could they kick me out? I still have that HeLoc that I owe $24k. Think I could make them a deal to write off that second lien? I'm so confused what is best. I love this house but it's starting to need some repairs. Maybe it's just better to move.... I think my mind will be turning all night and I'll prob get little sleep tonight.

[tobee43]

yes, they could eventually "kick" you out, however, you would get proper notice, or should and i'm certain you would move before that happened.

i so hear you about the house. our's was or did become a money pit, and that's why after 33 years we gave it up. it was beautiful, acres of finely cultivated gardens, ponds, pool, everyone one THINKS that they may want until all the stuff starts falling apart. (worse was the black mold from the new flooding that began and the leech fields which were replaced 3 times already), so actually it was a blessing for us.

our son came to visit, we went from a 4500 sq foot house to 2k and he said mom, dad, you traded UP!! LOL!! everything is new, fresh, cheaper to keep up. i can't tell you what a load off that house was. however, only YOU can decide on what is right for you and yours.

[Miknan]

Thanks for all the info and telling me about your experience. It really helps a lot. If I made a deal with 5/3rd on the HELOC and paid WF $12k and then maintained payments on time but still have to live in fear WF could kick me out, then it's a no brainer it's time to leave and live where I have some say. I just love this house. But in regards to the land contract house, I'm also scared that even doing everything right to rebuild my credit, I might have a hard time getting a loan in 5 years to refinance the land contract.

[tobee43]

well, as you may have read in some of the past posts: I LOVE LAND CONTRACTS! however, just my personal opinnion and did one for my daughter's house for her.

if you do, do, a land contract, make certain everything is in place. i did, since i wrote the contract, however, you need to get an atty (real estate) to review it and make certain it's ok. NOT that many of them exactly understand a land contract...here's an old post and although, i'm certain you know...i just want to repeat it because it could get sticky if not done correctly:

"land contract deals many people don't know what they are....and they are a sure target for future buyers...at least i think so.... just wrap around someone's mortgage....absolutely...a way around the system. my daughter did it with her house NOW....since she moved out of state and could not, (of course) sell her place.

i know it does get a bit confusing.....so here's some general info if anyone wants:

"Land contracts were very popular in the late 1970s and early 1980s. Back then, installment sale contracts, sometimes called contracts for deed, offered more attractive financing terms over the higher rates and rigid qualification standards of institutional lenders.
Land contracts began to disappear when loan requirements softened and rates dropped below 8%. But they have not vanished all together and, in fact, tiptoed back into the market in 2006."

What is an Installment Sale Land Contract?

Land contracts or contracts for deed are a security agreement between a seller, called a Vendor, and a buyer, called a Vendee.

The Vendor agrees to sell a property by financing the purchase for the Vendee.

The Vendor retains legal title and the Vendee receives equitable title.

The owner-carried financing can include an existing mortgage balance or the property can be free and clear.

Upon payment in full, the Vendor hands the Vendee a deed to the property.
All-Inclusive (Wrap-Around) Land Contracts

Wrap-around contracts contain an existing mortgage.

The Vendee makes one payment to the Vendor.

Upon receipt of the payment, the Vendor pays the underlying lender's payment and keeps the rest.

If the existing mortgage has a lower interest rate than the rate on the contract, the Vendor earns extra interest on money that does not belong to the Vendor.
This is how it works.

1.Say the sales price is $100,000.
2.The Vendee puts down $10,000.
3.The Vendee agrees to make payments on $90,000, bearing interest at 6.5%, payable $567.
4.The existing underlying loan is $50,000, payable at 5% interest with a payment of $268.
The Vendor earns 6.5% interest on $40,000 of equity, PLUS 1.5% interest on the existing mortgage of $50,000 and pockets $299 a month."

i just did a quick look up just so some that may not know what a land contract is has a "clearer" view of it....

they work..and i believe they are coming back!!!! "

[btbeme]

"Acceleration" is the first step in starting the foreclosure process. The remainder of foreclosure will take a few months (non-judicial) or many months (judicial). And, there are plenty of ways to stall the inevitable, such as applying for a HAMP loan modification. The new mortgage settlement from a couple days ago makes it very unlikely that a bank can continue foreclosure as long as you are "trying" to get a loan mod.

[Miknan]

I believe Mich is a non-judicial state. I'm not going to try and stall it. We already have a home picked out we like to move into but the last letter from WF stating how much we owe I can actually pay back. With the change in my circumstances I can afford to live here now and I would pay them back then stay and pay if I didn't have to worry about them having the right to kick me out anyway. I don't see why they would but I don't like them even having that right. I almost wish I could reaffirm despite everyone saying that is such a bad idea.

[tobee43]

I believe Mich is a non-judicial state. I'm not going to try and stall it. We already have a home picked out we like to move into but the last letter from WF stating how much we owe I can actually pay back. With the change in my circumstances I can afford to live here now and I would pay them back then stay and pay if I didn't have to worry about them having the right to kick me out anyway. I don't see why they would but I don't like them even having that right. I almost wish I could reaffirm despite everyone saying that is such a bad idea.

it really is both non-judicial and judicial, there are a few states that use both and michigan is one of them:

here's just a quick link to http://www.foreclosurelaw.org/Michig...losure_Law.htm

Judicial Foreclosure

In judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay. If the borrower fails to pay within that time, then the court will issue a notice of sale.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".


your "worse" scenario time wise would be they go non-judicial...


Power of Sale Foreclosure Guidelines (this for NON-judicial only)

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

1.A notice of sale must be published once a week for four (4) in a newspaper of general circulation in the county where the property is located. The notice must also be posted on the property at least fifteen (15) days after the first notice of sale is published.

2.The notice must contain the borrower and lenders name, a description of the property, the terms of the sale and the time, place and date of the sale.

3.The sale must be made at public auction to the highest bidder. The trustee or the sheriff of the county, if different, may conduct the sale between the hours of 9:00 am and 4:00 pm on the date specified in the notice of sale.

4.The sale may be postponed by posting a notice at the time and place where the sale was to originally be held. If the postponement is for more than one week, it must also be published in the manner as the original notice of sale was given"


it breaks it down fairly clear how the process works in your state.

[Miknan]

Sounds like my time is short unless I try to stall which I'm not going to do. Since I included my house in BK and I'm not going to do anything to drag this out, does it seem like this is going to move quick? Like a month or two? How far out are sheriffs sale usually held after posting in the paper for four weeks? Do I have to keep that notice posted on my door or cani take it down? Thanks. I know I sound redundant but I'm very nervous about moving. I'd hate to move then have my house sit vacant for another year or so.

[tobee43]

Sounds like my time is short unless I try to stall which I'm not going to do. Since I included my house in BK and I'm not going to do anything to drag this out, does it seem like this is going to move quick? Like a month or two? How far out are sheriffs sale usually held after posting in the paper for four weeks? Do I have to keep that notice posted on my door or cani take it down? Thanks. I know I sound redundant but I'm very nervous about moving. I'd hate to move then have my house sit vacant for another year or so.

i really think it depends where you are. i have seen some in calif go so quick it was mind boggling! arizona as well. so it really is all going to depend on which way they are going to proceed.

also, at this point you don't know if your lender is going the judicial route..because if they do, you have some time.