bankruptcy and then Foreclosure what's next?

[Elchulo71]

hi everyone, i filled bankruptcy seven months ago and now i am three moths past due i'm sure that my house it will go for foreclousure due to i don't have any intention to stop and also i don't have any money at all i did sing for my second mortgage but i don't sing on my first. now my question is what's going to happen next should i have to be in court with the mortgage company can they force me to repay both loan?




can someone help me please.
thanks.

[SinkingFast]

Odd situation.

You reaffirmed the 2nd, but did not reaffirm the primary mortgage. Correct??

The primary Lender will Foreclose. Depending on the laws of your State determines what happens and how fast. It could be non-Judicial and go quick, or it could be Judicial and take a while. Depends on the laws of the State your property is located in.

The primary mortgage holder get's paid first out of the proceeds of the sale. Their lien on your property was recorded first so they get first dibs. The Lender's costs will extend beyond just selling the home at auction. There will be attny's fees, and advertising, and such that will eat away from the proceeds at the sale.

If there is any excess left over, above and beyond your principal mortgage, the 2nd will get paid the remaining amount. Whatever that is. If any.

If the Primary Mortgage does not show as discharged in your BK, you could wind up in a world of hurt. You could have a deficit balance on the 1st and owe as much as all of the 2nd, plus costs, after the Foreclosure takes place.

[Elchulo71]

Odd situation.

You reaffirmed the 2nd, but did not reaffirm the primary mortgage. Correct??

The primary Lender will Foreclose. Depending on the laws of your State determines what happens and how fast. It could be non-Judicial and go quick, or it could be Judicial and take a while. Depends on the laws of the State your property is located in.

The primary mortgage holder get's paid first out of the proceeds of the sale. Their lien on your property was recorded first so they get first dibs. The Lender's costs will extend beyond just selling the home at auction. There will be attny's fees, and advertising, and such that will eat away from the proceeds at the sale.

If there is any excess left over, above and beyond your principal mortgage, the 2nd will get paid the remaining amount. Whatever that is. If any.

If the Primary Mortgage does not show as discharged in your BK, you could wind up in a world of hurt. You could have a deficit balance on the 1st and owe as much as all of the 2nd, plus costs, after the Foreclosure takes place.

thanks.

[Samantha]

what you can do to save your home is refinance i find it kind of silly for people to let their home go. If you loose your home will are walking away the looser with nothing you have to start all over. Feel free to contact me with any questions

Latoya

[SinkingFast]

[QUOTE=Samantha]what you can do to save your home is refinance i find it kind of silly for people to let their home go. If you loose your home will are walking away the looser with nothing you have to start all over. Latoya

You sound like my Mortgage Lender!!

We haven't made a payment in 5 months. We don't want to keep the house. We've moved on to another State. We're trying to sell the thing.

We have tons of CC debt we cannot pay, and we've already hired our BK attny.

Yet my Mortgage Lender persists in trying to get us to take a Home Equity loan or a HELOC to pay them the money we need to catch up on our mortgage.

If you're that far gone in debt and planning BK, or filed BK as the original poster of the this thread did already, you'd be insane to take on new debt.

[midleman]

what you can do to save your home is refinance i find it kind of silly for people to let their home go. If you loose your home will are walking away the looser with nothing you have to start all over. Feel free to contact me with any questions

Latoya

I disagree that refinance is an option. Most people in foreclosure dont have that option unless some scavenger lender wants to gouge the borrower with high rates and costs. No one with a foreclosure can get a Fannie Mae or Freddie Mac loan.

Your best option is to negotiate a modification or forbearance with the lender or find a competent foreclosure consultant to negotiate for you.

[SinkingFast]

[QUOTE=midleman]I disagree that refinance is an option. Most people in foreclosure dont have that option unless some scavenger lender wants to gouge the borrower with high rates and costs. No one with a foreclosure can get a Fannie Mae or Freddie Mac loan.

Your best option is to negotiate a modification or forbearance with the lender or find a competent foreclosure consultant to negotiate for you.

The statement about Fannie Mae and Freddie Mac is not all together true. I've read both Fannie Mae's and Freddie Mac's policies regarding BK, Foreclosure, time that needs to elapse, what types of positive tradelines reporting, and the required minimum FICO scores. Both programs will consider a borrower with a BK and a Foreclosure if extreme circumstances were the cause of the financial situation. Loss of job, medical expenses, death of a family member are all circumstances that qualify. You must be able to document the event, of course, but Fannie Mae and Freddie Mac both recognize that sometimes people have extraordinary events occur in their lives.

The link is one of those bogus con artists that claims to reduce debt to pennies on the dollar.

[midleman]

What is the acceptable FICO score?

[QUOTE=SinkingFast]

I disagree that refinance is an option. Most people in foreclosure dont have that option unless some scavenger lender wants to gouge the borrower with high rates and costs. No one with a foreclosure can get a Fannie Mae or Freddie Mac loan.

Your best option is to negotiate a modification or forbearance with the lender or find a competent foreclosure consultant to negotiate for you.

The statement about Fannie Mae and Freddie Mac is not all together true. I've read both Fannie Mae's and Freddie Mac's policies regarding BK, Foreclosure, time that needs to elapse, what types of positive tradelines reporting, and the required minimum FICO scores. Both programs will consider a borrower with a BK and a Foreclosure if extreme circumstances were the cause of the financial situation. Loss of job, medical expenses, death of a family member are all circumstances that qualify. You must be able to document the event, of course, but Fannie Mae and Freddie Mac both recognize that sometimes people have extraordinary events occur in their lives.

The link is one of those bogus con artists that claims to reduce debt to pennies on the dollar.

ALthough obtaining a Fannie Mae loan after a foreclosure is possible, it is not likely. Any legitimate lender is going to consider all the facts but the fact is most people with a foreclosure on their record have extremely low credit scores and have little time to re-establish their credit in a year or even two. I have been a loan officer for 22 years and even a non-conforming lender will not give a lot of consideration to a previous foreclosure. I still say negotiation is the best way to deal with a foreclosure if you cannot fight the case. Virtually all mortgage companies have workout programs but you need to know the ins and outs of the business to get a decent deal.

[SinkingFast]

The reason I was so curious about Foreclosure and possible future financing is we're about to go thru a Foreclosure.

But we're not young folks. This wasn't our first home. We've successfully bought, owned, and sold 2 before this house. We have lots of "Closed. Paid as Agreed." loans in our past.

We are in the situation we're in due to job loss in July of 2004. When Hubby found a new job the next year, it was outa state. We immediately had to support 2 households. We cashed out a retirement IRA to pay off the 2nd on the house for marketing to sell. But after a year, have been unable to sell the house. That's after numerous price decreases that put us at the point of simply paying the loan and all closing costs.

We have documentation to support all the above. We've done everything we could except a Short Sale. Our Lender mentioned Short Sale but never bothered to explain how to go about getting approval to do a Short Sale. It was only after we received the letter in the mail from the Foreclosure Trustee that we learned how Short Sale worked. At that point, it was too late. Our Lender will not delay the Foreclosure process to allow for a Short Sale.

So I've spent a great deal of time learning what Lenders will and will not do. Had this been the only house we'd ever owned, I'd believe you'd be correct. But in our specific situation, I believe our previous Credit History will come to bear once we reestablish ourselves after the BK.

[midleman]

You may be an exception

I agree that your previous history may have some bearing on whether you can finance a home in the future but as a veteran loan officer I can tell you that your most recent history plays a bigger part in obtaining a loan than your previous history. Everyone that ever obtained a loan HAD good credit at some time or they wouldnt have gotten the loan. Most of my clients have been in good standing for many years only to go through a temporary financial hardship. One thing lead to another and they ended up in foreclosure. I have been able to resolve thousands of foreclosures but very few were able to borrow anytime soon after the foreclosure hit their credit. Time heals when it comes to credit. But a foreclosure tends to stick around for a long time. I know the guidelines say it is possible. Reality says lenders are more cautious except sub prime lenders who charge much higher rates and fees. And that only with a substantial down payment. However, if you resolve the foreclosure through modification or forbearance the FC ultimately ends in dismissal and the FC should not be a permanent ding on your credit. In fact it shouldnt effect your scores if it has been dismissed.

[SinkingFast]

Gee Thanks.

Just get the gun and pull the trigger now. Why even bother going on.

[debtisbad]

Actually, now is probably not a good time to buy real estate anyway, unless you are at the lower end of the market. Prices should tend to level off over the next few years. I figure by the time I am ready to buy foreclosure and bk will (hopefully) not matter as much. Plus, I will be finished with college and have a better job (at least that is my plan). I am thinking maybe 3-5 years at least!

[SinkingFast]

I don't know that we'll ever want to own a house again, but,........... You never know what the future will hold.

I'm sure we're gonna need credit of some sort. At the very least, to buy a car.

I was just hoping that having previously successfully owned and sold 2 houses and paid off several cars, and loans paid in full, and such would have counted for something. But I guess, according to Midleman, current credit history matters the most. All the previous 25 years' credit history won't be worth much of anything.

So I guess with the double whammy of BK and Foreclosure, we might as well start digging the holes to climb into. I don't know that we can live for years like we've been living the last 6 months or so.

I keep telling myself it will get better, but I'm beginning to think NOT.

[debtisbad]

Sinking,

it will get better! I am actually feeling pretty good today, or at least better than I have. Must be the fact I am back in classes with 20 year olds LOL!!! Anyway, it appears negatives tend to not matter so much after about 2-3 years. I agree with probably not owning a house again, but I like to know if I want to I can. So what are your future plans? Well, its starting to storm again here in north indy. I swear the weather here is horrible. I want to go back to GA or south in 2-3 years.