Sherrifs Sale of Property....

[BK2008]

I just received my Default and Acceleration notice from my lender.
If I don't pay blah blah blah, by such a date, they will have a trustees sale on December 2nd at the courthouse. Ok, fine, great. I am still living in the house. I'm all packed up (except for what I still need), and have sold most of everything in the house except for a few pieces of furniture. So getting out isn't going to be a big strain.

This is Texas, and I have 21 days after the sheriffs sale to get my stuff and get out. But what I was wondering is, what happens if they don't sell it on the 2nd of December'? Can they still force me out on the 21st day? Or do I get to keep possession until title changes?? So far, I am still the owner on record.

There are ALOT of fc's around here, and what I have been hearing, they aren't selling too well. The prices the lenders are putting on them are ridiculous, and buyers aren't biting.

So do I just continue to live rent-free until D-Day???

[BKParalegal]

The property will always sell at foreclosure, because the lienholder makes the first bid, effectively buying the house from themselves, unless someone else puts in a higher bid.

Good Luck

[BK2008]

Why would they buy the house from themselves??

For purpose of clearing title??

Just trying to understand the process.

[HHM]

Why would they buy the house from themselves??

For purpose of clearing title??

Just trying to understand the process.

That sums it up.

[BK2008]

So, when can I cancel my HO insurance, on the date of sale??

And what happens to my escrow account?? There's a good chunk of change in that.

Thanks.

[TEW]

Escrow goes to any deficiency on the loan.
Thanks for this thread I was trying to find this info. I will not be dropping the insurance until the deed is no longer in my name.

[b_girl]

We handed a house to the bank a few weeks ago and dropped insurance the same day, as the bank said they would secure and insure it themselves. We checked with our attorney first to make sure we were right to do so and he confirmed that we could.

[BK2008]

Fortunately, my hp insurance was paid thru esctrow on October 1st, so that lessens the escrow account they will inherit. And I will get a major portion of my insurance premium back, since it was paid in full, and that refund will come directly back to me.

So with what is the balance of the escrow fund, should cover most of the property taxes due at the end of the year.

Do I get to write off that portion of the prop taxes, since the funds earmarked for that purpose are being paid by me??

And what happens to the HOA dues?? I just got a bill, due the eom. Do I need to pay that? (It is covering the last 6 months). Or let the HOA eventually file a lien on the property?? Who is liable for that? Me or the bank?

[StartingOver08]

You are responsible for the HOA fees until the property transfers to the new owner/bank. Think of it as rent! I know it s*cks - I have two homes in foreclosure now (and I am in a CH 7) both homes are in HOA communities. Naturally I put the past due fees in the petition, but found out I have to pay all fees since the filing date. BTW, thats $255/mth on one and $85/mth on the other.

Next time - no HOA community for me!

[BK2008]

You are responsible for the HOA fees until the property transfers to the new owner/bank. Think of it as rent! I know it s*cks - I have two homes in foreclosure now (and I am in a CH 7) both homes are in HOA communities. Naturally I put the past due fees in the petition, but found out I have to pay all fees since the filing date. BTW, thats $255/mth on one and $85/mth on the other.

Next time - no HOA community for me!

That does ****. Fortunately, mine is $175 for the 6 month period, so I guess I will be writing a check? This billing came AFTER my Bk has discharged, although it is in the time frame of the BK.

What is the worst case scenarion if I don't pay?? The HOA files a lien on the property, a property that the bank will be taking over in December??
Anyone with experience on this??

[StartingOver08]

I am a Realtor. We ususally see the past due fees on the closing statement in our area for the seller/bank to pay in order to deliver clear title to the new buyer. In fact it is very common in our area to see the seller/bank pay the past due HOA fees.

HOWEVER, while I was doing some reasearch earlier today I noticed in the
Florida HOA Statutes (link here http://www.flsenate.gov/statutes/ind...720/ch0720.htm)

that the association can come after the owner of record and the previous owner of record. That was a real surprise. I believe that is so they can get the funds from the bank or the immediate past owner in case the bank won't pay. I believe this is fairly new (this part about the owner or record and the immediate past owner), because it mentions July 1, 2008.

See below:
When authorized by the governing documents, the association has a lien on each parcel to secure the payment of assessments and other amounts provided for by this section. Except as otherwise set forth in this section, the lien is effective from and shall relate back to the date on which the original declaration of the community was recorded. However, as to first mortgages of record, the lien is effective from and after recording of a claim of lien in the public records of the county in which the parcel is located. This subsection does not bestow upon any lien, mortgage, or certified judgment of record on July 1, 2008, including the lien for unpaid assessments created in this section, a priority that, by law, the lien, mortgage, or judgment did not have before July 1, 2008.

and this part too
If the parcel owner remains in possession of the parcel after a foreclosure judgment has been entered, the court may require the parcel owner to pay a reasonable rent for the parcel. If the parcel is rented or leased during the pendency of the foreclosure action, the association is entitled to the appointment of a receiver to collect the rent. The expenses of the receiver must be paid by the party who does not prevail in the foreclosure action.

this is the part about the prior owner:
)(a) A parcel owner, regardless of how his or her title to property has been acquired, including by purchase at a foreclosure sale or by deed in lieu of foreclosure, is liable for all assessments that come due while he or she is the parcel owner. The parcel owner's liability for assessments may not be avoided by waiver or suspension of the use or enjoyment of any common area or by abandonment of the parcel upon which the assessments are made.

(b) A parcel owner is jointly and severally liable with the previous parcel owner for all unpaid assessments that came due up to the time of transfer of title. This liability is without prejudice to any right the present parcel owner may have to recover any amounts paid by the present owner from the previous owner.

I am not an attorney, so some of this is really over my head
Anyone else can jump right in to see if what these Statutes say mean the same thing to you.

[hnhlvr]

Hi,

Yes you have to move out. A home nearby me went up for auction and didn't sell and the owners still had to move out on the auction date. They stayed in the home seven months w/out paying the mortgage, so I'd say they pushed it as far as they could.

The house didn't sell at auction and now is up for sale listed as "bank owned."

Luckily we don't have an HOA. . .I've read that most quit paying those fees when they default. (we are still stuck paying the water until dec. when the house is auctioned.)

[No Gravy]

Hi,

Yes you have to move out. A home nearby me went up for auction and didn't sell and the owners still had to move out on the auction date. They stayed in the home seven months w/out paying the mortgage, so I'd say they pushed it as far as they could.

The house didn't sell at auction and now is up for sale listed as "bank owned."

It seems to be different everywhere, and I'm curious because I'm in the same boat, and wondering when it will get to the point where they require me to move. My foreclosure sale is schedule for Nov. 18th (and I'm in CA).

Someone in a nearby county had 3 foreclosure sales before his lender contacted him and asked him to move.

[No Gravy]

I just received my Default and Acceleration notice from my lender.
If I don't pay blah blah blah, by such a date, they will have a trustees sale on December 2nd at the courthouse. Ok, fine, great. I am still living in the house. I'm all packed up (except for what I still need), and have sold most of everything in the house except for a few pieces of furniture. So getting out isn't going to be a big strain.

This is Texas, and I have 21 days after the sheriffs sale to get my stuff and get out. But what I was wondering is, what happens if they don't sell it on the 2nd of December'? Can they still force me out on the 21st day? Or do I get to keep possession until title changes?? So far, I am still the owner on record.

There are ALOT of fc's around here, and what I have been hearing, they aren't selling too well. The prices the lenders are putting on them are ridiculous, and buyers aren't biting.

So do I just continue to live rent-free until D-Day???

I'm sorry to hear this, though I'm in a similar position....except you're well ahead of me on the "packing front"!

I've read about buying a house in foreclosure from the purchasers side, and at the first auction *if* anyone but the lender were to bid on it, they would be buying a house semi-sight unseen. Obviously they can drive my the outside, but can't see the inside if someone is still living there.

I've had a few obvious drive-bys, but being as I owe $263k (plus fees), and there are houses in this area MUCH nicer and not in the middle of a remodel selling for $135k...I doubt anyone would make an offer on mine.

It does make me wonder, since I've seen "bank owned" properties listed for sale online, and quite a few of them had signs of someone still living there (kid's bikes in the driveway, etc).