Foreclosure questions....

**mommy2krj** · 12-06-2011, 02:20 AM

First I would like to say that we tried. They just kept piling it on. Now we're broken and they can have the stupid house. I don't want to own a house at the expense of my family's well being.

Now, my first question is...which is better? Forclosure, short sale or deed in lieu? Too much information out there, I'm having problems sorting through it all. We've gotten a letter or two from people wanting to help us and I'm not sure where to turn there either.

Next question....anyone know why they listed a medical group as a defendant? I'll just say I'm aggravated with the medical billing people at this point since I NEVER get bills, just the "This is not a bill" letter and then nothing until collection calls. Going to be a long conversation with them. I would think they'd be listed as Plaintiffs alongside the bank? I know it doesn't change anything, we are just wondering why.

It sucks but between them piling things on, medical bills that keep getting behind, and now a reduction in monthly income we just can't do it any more. My husband has been nothing but a ball of stress since we bought this place and I am hoping that once we do move and get this all behind us that some of that stress lessens. The house just keeps falling apart and we don't have the money to fix them. Gah. Add in all the other things that life likes to throw at you and I will be so very happy to have this year end. We are working on saving money for when we do move. And paying off other stupid issues. Having these issues makes me feel like a freaking teenager again....and not in a good way!

Thanks for letting me get that out. If anyone can answer any of the questions I put out there....I would most appreciate it. If it helps any, we're in Wisconsin.

**Lora88** · 12-06-2011, 06:53 AM

In some states when you contact your lender and do a deed in lieu you can do what they call keys for cash you turn over the house and they give you some money for relocation. Call your lender and ask

**Sophia** · 12-06-2011, 08:44 AM

I don't know the answers to your questions but I'm sending you hugs and prayers that things get better for you. TC

**OOwl** · 12-06-2011, 09:14 AM

No advice, just compassion and understanding. I'm walking through this process with my best friend, and I see what it's doing to him and his family. One thing I have noticed, that the process takes a LONG time (or it does here). I hope you emerge on the other side stronger financially and as a family. Someday, this will just be something you tell your grandchildren you overcame, not something that consumes your every thought. My sincere best wishes.

**melodys** · 12-06-2011, 06:29 PM

Sorry you are going through this. Regarding your question please be aware that laws vary greatly state by state. I am not an expert, but a fairly well informed layperson.

Some states allow banks to try to collect the amount owed remaining after a foreclosure and some do not. In general, a short sale is best for your credit and foreclosure is worst for your credit. You should get yourself educated in local laws then contact your lender and work with them if at all possible. In the case of a short sale the lender will accept the proceeds of the sale as payment in full for the outstanding loan. It's a difficult process, but probably worth it, if you can go this route.

If you live in a state that does not allow banks to collect the remaining amount after a foreclosure you may want to consider living in the house and not making payments for as long as possible. The ethical question here is up to you to decide. If you live in a state that allows banks to collect afterwards then you need to play nice and not do things that increases the bank's expenses in the process.

If bankruptcy is also in the picture do NOT raid your retirement accounts. (You shouldn't do this in anycase.) IRAs and 401k's are protected assets in bankruptcy. You do not need to declare bankruptcy to have a foreclosure, but I thought I would mention that since you have other debt that may be unmanageable.

**Lori63** · 12-11-2011, 08:57 AM

I am facing the same issues, just a little different situation.
I am not one to run from my responsibilities, but my husband is. He left me a few months ago, and my son and I remain in the house. We barely had any money together, and separate with his nice apartment and all, we are both broke.
Together we could have made it financially, but not now.
It is huge, and we need to try to sell it, which is not going to happen in this housing market.
I am considering just walking away from it. I am going to speak to my lawyer after the holidays and try to come up with whatever the best solution is for my kids and I.
I feel your pain-it is not an easy decision

**Nishu** · 12-12-2011, 02:23 PM

In order, probably

Deed in lieu- you hand over the keys, they accept it as payment on your mortgage.

Short sale- a third party offers to buy the home for less than what you owe. Bank has to approve. In some cases, your credit gets trashed, but arrangements can be made to keep your credit clean. You need to talk this over with the bank. A short sale will save the bank the trouble and cost of filing foreclosures and selling the property.

A lot of the "foreclosure rescue" people do the short sale. They step in, offer the bank less than what the house is worth and less than what you owe, and flip it, often doing a contract for deed sale. You really need to check references and do a lot of reading before you fall into bed with a foreclosure investment operation.

Foreclosure- Probably the worst option. Bank takes the house, sells the house, and then usually you get stuck with a bill that is the difference between mortgage balance and sale price. It's probably easiest to do though.

Keeping asking if you're ever not sure. Someone here is bound to know.

Good luck. Sorry bout your house.

**Nishu** · 12-12-2011, 02:33 PM

Originally Posted by mommy2krj

First I would like to say that we tried. They just kept piling it on. Now we're broken and they can have the stupid house. I don't want to own a house at the expense of my family's well being.

Now, my first question is...which is better? Forclosure, short sale or deed in lieu? Too much information out there, I'm having problems sorting through it all. We've gotten a letter or two from people wanting to help us and I'm not sure where to turn there either.

Next question....anyone know why they listed a medical group as a defendant? I'll just say I'm aggravated with the medical billing people at this point since I NEVER get bills, just the "This is not a bill" letter and then nothing until collection calls. Going to be a long conversation with them. I would think they'd be listed as Plaintiffs alongside the bank? I know it doesn't change anything, we are just wondering why.

It sucks but between them piling things on, medical bills that keep getting behind, and now a reduction in monthly income we just can't do it any more. My husband has been nothing but a ball of stress since we bought this place and I am hoping that once we do move and get this all behind us that some of that stress lessens. The house just keeps falling apart and we don't have the money to fix them. Gah. Add in all the other things that life likes to throw at you and I will be so very happy to have this year end. We are working on saving money for when we do move. And paying off other stupid issues. Having these issues makes me feel like a freaking teenager again....and not in a good way!

Thanks for letting me get that out. If anyone can answer any of the questions I put out there....I would most appreciate it. If it helps any, we're in Wisconsin.

A medical group as the defendant? Hmm. Were you sued for a bill? Does this have something to do with the house? If it does, the people you owe the bill to might have got a judgment against you and were granted a lien on the house. You should really sort all that out before you move ahead.

**dwnloom** · 12-12-2011, 03:00 PM

We did a deed in lieu. We did not find out until after the fact, it will be three years before you can buy again. Overall, it was a fairly painless process, considering everything else. Also, it can be hard to find a rental. We finally found a place that we will be moving into at the end of this month.

Good Luck and know that you are not alone.

**mommy2krj** · 12-12-2011, 11:34 PM

Originally Posted by Nishu

A medical group as the defendant? Hmm. Were you sued for a bill? Does this have something to do with the house? If it does, the people you owe the bill to might have got a judgment against you and were granted a lien on the house. You should really sort all that out before you move ahead.

Yup, as defendants. I am currently unaware of any judgements.
See that's the thing I'm not understanding...we have been sued in the past for medical bills but those are paid.

Still working on this one. This is all so confusing. At this point I'm still working through all of this. Hopefully I will have some answers soon. At least to the question of the other defendants. I just find that weird.

**Nishu** · 12-12-2011, 11:37 PM

Originally Posted by mommy2krj

Yup, as defendants. I am currently unaware of any judgements.
See that's the thing I'm not understanding...we have been sued in the past for medical bills but those are paid.

Still working on this one. This is all so confusing. At this point I'm still working through all of this. Hopefully I will have some answers soon. At least to the question of the other defendants. I just find that weird.

Is it part of a class action lawsuit? If there is a case number, google it and the name of the company.