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Foreclosure Advice

2K views 7 replies 6 participants last post by  scottp999 
#1 ·
Someone in my immediate family is newly laid off and most likely will face foreclosure. She is so scared right now! Are there any ways to get her help? What's the 1st thing she should do? Jobs are scarce, and there's no EF whatsoever. Has anybody had any success on getting helped? Any leads at all right now would be appreciated very, very much!

Theresa :)
 
#2 ·
Work with the bank, talk to them, stay in communication. Let them know your situation and that you are willing to work with them. (Them not you, not gonna retype all that) My BIL just went through the whole gambit of financial black hole. When he & wife sort-of-split (a year later no one knows what's up and I won't even begin to describe the situation, that's a different forum, lol) he quit paying the mortgage, the second loan they took out for down payment, and quit talking to the bank. He made the baffling decision to go through bankruptcy but not include the house and let it go to auction. There were stacks of letters from the bank asking him to short sell it, they were really willing to deal on payments, refinance, new terms.
The bank wanted to work out something but he did not. The house he paid $150k for sold at auction for $60k
 
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#4 ·
What bank is the mortgage servicer? I am deep into the short sale process with BOA for a friend right now. Do you know if they put down 20% at closing?

With BOA, I got the short sale process started by calling their Loss Mitigation department (when the loan was still current). I asked them to send a letter with what they needed in the short sale package, and they told me to have a realtor put it on the market for current value, and send the package in as soon as we got an offer.

I took some vacation time, purchased a storage space, and helped get the house cleaned up for showing (touch up paint, new toilet seats, fixed the ice maker, removed alot of extra furniture to make he rooms look bigger, worked on the yard, carpet shampoo, fixed a dryer vent, new blinds, calking, and a super cleaning of everything). As soon as I was done, I had it listed. My neighbor is the realtor, an he walked through the property with me before I started working on it, to give me a list of things to get done for it to show better. I think there were something like 60 things to do, but most of it was cleaning, and fixing a couple of things. Went over there 5 days straight and got through it all with the help of a couple of friends that were good at touch up painting.

Short sales are hard work, and patience is needed, but they can be done. Many people get frustrated and only about 10% see it through to a successful completion. It has been just over 3 month since we listed the property, 4 months since I took vacation to get the place in shape, and I may have the final negotiations done this week if I am lucky. The investor and BOA has already approved it, need to negotiate with the PMI company and get the terms of the short sale letter worked out before a closing is set.
 
#5 ·
The investor and BOA has already approved it, need to negotiate with the PMI company and get the terms of the short sale letter worked out before a closing is set
What terms with the PMI? Are they separate from the bank? I know what the PMI is...but can you explain what they have to do with the short sale or a foreclosure for instance.
In a foreclosure what rights to the homeowner do they have if they are just an insurance agent so to speak.. Thanks
 
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#6 ·
Are they getting unemployment?
Can they make the house payment and power bill and water bill with the amount they (might) get from unemployment.

I say that only because if they can make the absolute basic bills and get food from food banks etc. maybe they can save the house.
 
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#7 ·
Halt all payments on unsecured debt (credit cards, personal loans).

If there is debt on the cars, sell em, buy beaters, finance the difference. Better to owe 2k more unsecured and have a car than 12k secured on a car you just saw drive away on the back of the repo man's truck.
 
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