Frugal Village Forums banner

1 - 8 of 8 Posts

·
Registered
Joined
·
31 Posts
Discussion Starter #1
Just a question...

How come some people that go into foreclosure after about 3 or 4 (or more) months and some people get foreclosure "warnings" after 25 days of being late?

I only ask because I had a friend whose brother lived in his house for two YEARS after they put him in foreclosure.

Another friend was not even a full month late and got a foreclosure pre-notice saying they were at risk.

Do they really want empty houses back that quickly?? Does it really depend on the company with such a huge time frame difference?
 

·
Registered
Joined
·
3,355 Posts
Getting a foreclosure notice is not the same thing as actually being in foreclosure. Once you miss a payment you will get many notices and warnings but it's takes a VERY long time before you will actually be evicted from your home.
 

·
Registered
Joined
·
1,743 Posts
The banks do NOT want the houses back. And I think the efficiency of the bank has a lot to do with it. Banks that have been foolish about lending to less-qualified buyers, are overwhelmed with foreclosures and slower about the process.
 
  • Like
Reactions: Vegas1980

·
Registered
Joined
·
553 Posts
The usual scenario goes something like this. 1st month - where is your payment, 2nd month - more forceful where is your payment, 3rd month - threats, 4th month notice of right to cure, 5th month foreclosure filed, 6th to 8th month (courts are busy) order on foreclosure entered.

Now in Iowa, if after you were served the foreclosure and if the house is your primary residence, and you filed a notice of delay of sale before the foreclosure order was entered, you have six more months before it goes to sheriff's sale. Generally you have 9 to 12 months after you stop paying before you are required to be out. Each state has different laws so you'd need to check how it works in your state.
 

·
Registered
Joined
·
553 Posts
Oh, I should add that some banks are letting properties set for quite some time before they are filing foreclosures. I have a client that surrendered her home in bankruptcy 4 or more years ago and moved out. She is still getting notices from the city about snow removal, mowing, trash clean-up etc. because the mortgage holder has never filed a foreclosure. On the record the property is still in her name but due to the bankruptcy she is no longer the responsible party so the property is in limbo until it gets sold for back taxes by the county. I have to assume the mortgage holder either did not think the property was worth the expense of foreclosure or their records were so bad they couldn't prove they held the mortgage.
 

·
Registered
Joined
·
8,566 Posts
What Anna said.

People get confused because since the bank *can* foreclose, they think the bank actually owns the house. It doesn't.

Your loan with the bank gives the bank the right to legally seize the house should you default on the loan. The house never belongs to the bank to begin with.

People will sometimes default to "give the house back" - which is silly - giving the house back would be giving it to the people from whom the house was bought.

In reality the bank HAS to go to court and PROVE that you've defaulted on the loan, after which the courts will approve the seizure of the property. Then and only then does the bank ever get to claim any real ownership of the property.
 

·
Registered
Joined
·
4 Posts
Anyone know how efficient or quick BofA is on this? I believe my home will end up in foreclosure due to my ongoing divorce - its current right now, but the EF is gone to keep it that way. Goal is to live there as long as possible before being forced out.

Thoughts? Oh - I'm in FL.
 

·
Registered
Joined
·
553 Posts
Bank of America ran into trouble last year with foreclosures done inproperly so they backed way off and were reviewing procedures. I'm not sure where they are now on filings.

Do you have a divorce attorney? If so, ask him about foreclosure in Florida and what you should do to stay in the house as long as possible.
 
1 - 8 of 8 Posts
Top