trustee sale date set

[desertgrl74]

What should I expect from the trustee sale and what is the process? Is it a long process?

[desertgrl74]

My questions regarding this are just about the paper work. How long does it take to get my name off of the property? And is there anyone that has dealt with association dues after their property has sold? Has anyone had to pay anything as far as that? What if the property doesn't sell for what I owe? What then? Just some questions to ask. If anyone has any comments or anything, that would be great.

[LoadedGuns]

Some demographics would be nice.

[desertgrl74]

In Nevada.

[LoadedGuns]

http://www.realtytrac.com/foreclosure-laws/nevada-foreclosure-laws.asp

[BKDefender]

After the trustee sale, the buyer will usually get the title and have it recorded in about 10-20 days, i.e. about 2-3 weeks' time.

In Nevada, any buyer at a foreclosure sale is required to pay up to the past 9 months' of HOA assessments & late fees/costs. Anything more than 9 months you are technically responsible for, but because the super-priority lien the HOAs get only attached to the house, they'd have to sue you for the remaining amount - and they won't do it (or at least I haven't seen them do it...)

Once the person buys the house at the auction, they are the owner of the property so they become responsible for the HOA assessments that accrue after the sale of the property. They might not be the recorded owner, but they are the actual owner.

If the property doesn't sell for what you owe on it, then your lender's options depend on whether they are the 1st mortgage or the 2nd mortgage and whether they were the ones foreclosing or the other lender was.

If you owe more on the 1st than the house is worth, then I'm assuming the 1st is the one that foreclosed? If so, then the 1st lender has 6 months after the date of the foreclosure sale to apply for a deficiency judgment with the district court. If it does not do so within 6 months of the trustee sale, then they are FOREVER barred from EVER coming after you for the deficiency. BUT because they lent actual money for purchase of the house, then they can write off the debt off their books, and issue you a 1099 for discharged debt and depending on your assets/liabilities at the time of the sale, you may have to pay income tax on some or all of that phantom income.

The 2nd mortgage in this situation, because it wasn't the one that foreclosed, becomes identical to a credit card debt - it is an unsecured debt thus it has 6 years from the date of the trustee sale to file a collections lawsuit against you. Because they're a regular debt, they'll often settle for a smaller fraction just like CC's will. They have to sue you and get a judgment to garnish wages - just like CC's do. You get the point.

If this home is your primary residence at the time of the foreclosure, then more than likely the whole discharged debt is non-taxable so you should be fine. If this is an investment home or you didn't live in it when it foreclosed, and you didn't file bankruptcy before the trustee sale, then you'll need to go to an accountant and get him/her to do a personal net worth statement to figure out how positive or negative your net worth is. The discharged debt is 'eaten' by however much negative you are and any remaining amount is taxable income.

I go through this spiel just about every client consult where they are about to lose their home - so if it sounds recited, that's because it is!

If you're in the Vegas/Pahrump/Laughlin area, feel free to call me - no charge.

--William