Foreclosure question?
Question:
Answer:
When he has to move out, believe me he will be the first to know.
SSSHHHHHHHHHHHHHHHH!
If the house was foreclosed and he surrendered it, then if he is still living there it is at the indulgence of the lender who foreclosed and now owns the house. They can literally evict him bodily, by force if needed, if they choose to do so. Bankruptcy does not remove the asset of the house, only his personal debt to the lender, transferring ownership of the asset, the house, back to the lender since it was the asset, the house, which guaranteed the loan, not the personal reference of the man who secured the loan. The lender owns the house, he doesn't, it is that simple. After forclosure is completed, the new owner has the right to remove him from the house. The fact that they have not means they may not know he is still there. They trusted him to leave and he didn't and it may be as simple as them not checking to see he moved out as he was obligated to do once the forclosure was finalized. By not moving out as he was obligated to do when ownership was trasferred back to the lender, he is in violation of trespassing law, squatting, and can go to jail if they find out and decide to get serious about him leaving and take the matter to the courts. Get out now, to avoid any legal action for tresspassing or squatting on private property. Or, suffer the consequences of breaking the law... You be the judge. I own a house, valued at $250,000. I owe only $30,000 on the mortgage. If I stop paying, they will foreclose and sell my house to discharge the remaining debt. If they auction my house for only $30,000, I get nothing and someone gets a really good deal and I get nothing! If they sell my house for $200,000, I get the balance over what I owe. But either way, I have to surrender the asset and move out, regardless. I know a guy who intentionally let his house go into foreclosure, and then bought back his own house for less than what he originally owed. This was like winning the state lottery. The odds of this happening are rare at best. He gambled on losing odds and in this single case, beat the odds. Your odds of doing the same are just as remote. I would not advise gambling. Chance has a way of working agianst you at the absolute worst of times. Get out now, avoid the legal problems of tresspassing or squatting, or get up the money to buy the house back. Choose your best course. Lenders will talk, if you can show some monetary gain for them. They would rather get the some money, profit, than go through the courts, even if it is less than they originally figured on the original home loan.
Do not rat him out. SHHH. once they go to kick him out he needs to make a lot of keys and hand them out to the homeless for ten buck a pice, and let the bank deal with it.
That's odd that he's gotten away with free living for so long. However, if he no longer owns the home, and has transferred title to another party, they can evict him after giving notice. He might want to be on the lookout for any paperwork from the county sheriff's department, since they usually handle evictions for banks.
He could try calling his lenders to find out about the status of the property. Many times, he'll just get in contact with a customer service rep who can give him some information but who won't be able to put any plans into action. But they might be able to tell him where it is in the foreclosure process.
Sometimes, a property slips through the cracks and, for one reason or another, isn't dealt with by the lender until someone notices that there are unresolved issues. That's what it seems like is the case here, as homeowners who fail to make their mortgage payments get several calls every day from their lenders.
The actual time frame of the foreclosure process varies by state, so researching the foreclosure laws in your friend's state would possibly give him more of an idea of moving out now or waiting a while. He could be in a redemption period after a sheriff sale, which is additional time after a foreclosure auction that a homeowner can live in the property and try to find some solution. But 6 months is a long time to live mortgage-free in a house he used to own.
Try those ideas, or call the county to find out whose name is on the title right now.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
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