What happens if we abandon our home at the beginning of the foreclosure process?

[kellysmum]

We have not paid our mortgage since September. I have received notice from Wells Fargo that they will accelerate the loan on December 19 and begin the foreclosure process. We are considering walking away from the house now, as we have found a suitable rental and do not wish to sit around waiting to be thrown out of the house. We are filing for bankruptcy ch. 7 in December. So what will happen if we walk away from the house?
C.

I might add that the house is in a state of disrepair which we cannot afford to remedy. We simply did not have the money to keep up with home repairs, and now the basement floods every time it rains, the ceilings leak, the pipes in the house are original and need replacing, the front steps are falling apart, the house has no water pressure whatsoever, and there is a mold problem.

[Floridagail]

The house will sit empty, possible they will lock the doors with new locks, You will pay rent when you could of saved some money, it will probably takes 6mos or 1 yr, Ours is going on 29mos since they said they were starting the forclosure, no summary judgement given yet so I wait. They threaten too for quite awhile after they start with the LP notice. Free rent is Free rent.

[tobee43]

ohio is a judicial foreclosure state, like florida, nj and a few others...which means your foreclosure must go through the courts. these types of foreclosures usually take time. when you hear people talking about i heard they stated for 3 years or 4 years, before leaving, it's usually because the property was located in a judicial state.

we only stayed approx 6 months after being served, however, if i had been a bit smarter i would have stayed longer as it's been now 4.5 years and the bank hasn't even made a move other than that very first notification. our situation however, did not allow it simply because the heat and electric costs were so high that we just moved out of state where we were able to afford to life without the worries.

if you can, stay and save as long as possible. it will make your move much easier with money in hand. if you chose to leave, the bank will just change the locks put an umbella insurance policy on it and most likely winterize it. unless you are in an HOA, you basically for the moment are done. however, if you belong to an HOA remember those fees are not dischargable in a bk, so continue to pay them. if not, fees, an interest will build up and you do not want that. our atty adivised up to lock it and leave it, however, i notified the bank by email.

[Pjmax]

I don't know anything about forclosures, but I think another consideration would be: How easy is it to find a good rental in your area and a good rental may or may not be easier to land before a BK and foreclosure is on your credit check.

In the end, you have to decide what is best for you.

[tobee43]

I don't know anything about forclosures, but I think another consideration would be: How easy is it to find a good rental in your area and a good rental may or may not be easier to land before a BK and foreclosure is on your credit check.

In the end, you have to decide what is best for you.

that's actually one of the points here. save save and SAVE and stay as long as possible. nowadays many times money talks and it's easier to find a place to rent if you can give them six months rent in advance if your credit is not looking so good.

[Pjmax]

that's actually one of the points here. save save and SAVE and stay as long as possible. nowadays many times money talks and it's easier to find a place to rent if you can give them six months rent in advance if your credit is not looking so good.

Tobee, OP said they already found a good rental. I understand about staying and saving, but is it worth taking a chance that another good rental may not be found later?

[keepsmiling]

Unless the rental is an amazing deal and good ones are very hard to come by, I'd wait.
Just think about two years worth of mortgage payments in your pocket. That could be a LOT of cash.
Be sure to save it tho... the temptation to spend it could be overwhelming. We know people who have paid nothing in three years and wound up spending the cash on who knows what. Not a good situation, and they could wind up in a very very bad place.

[tobee43]

Tobee, OP said they already found a good rental. I understand about staying and saving, but is it worth taking a chance that another good rental may not be found later?

well, we had some other opportunities, but having a pocket full of money it made it easier to find something a bit better in addition to paying for all the moving expenses (which are tax deductible by the way). i'm just saying whether OP has found a rental or not, it's just another option to consider. a suitable rental may be alright, but an excellent one may be a better choice. ....that's really the only point i'm trying to make here. as well, as they don't have to run out immediately, as it takes a bit of time before they can foreclose in that state. also moving in the winter months is really terrible, we did it and it was awful.

[tobee43]

Unless the rental is an amazing deal and good ones are very hard to come by, I'd wait.
Just think about two years worth of mortgage payments in your pocket. That could be a LOT of cash.
Be sure to save it tho... the temptation to spend it could be overwhelming. We know people who have paid nothing in three years and wound up spending the cash on who knows what. Not a good situation, and they could wind up in a very very bad place.

ahhhhhhhhhh...i didn't c u!! LOL!!! ditto you sentiments!

[bcohen]

I also agree that you should stay put. You are at the beginning of the foreclosure process! Why waste money on rent, while your house sits empty, probably for a year or more? Put that money in your own pocket. When you have a sale date, then it's time to have a rental lined up--not before.

[kellysmum]

Thank you all for the advice. We have decided to stay put and save. The rental was "suitable"-certainly not "ideal". It was in a bad neighborhood and the landlords were tyrants. THANK YOU.

[tobee43]

Thank you all for the advice. We have decided to stay put and save. The rental was "suitable"-certainly not "ideal". It was in a bad neighborhood and the landlords were tyrants. THANK YOU.

best of luck to you! and try and have a wondrous holiday! it will all work out!