What are the repercussions of foreclosure?
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We are in the SAME BOAT! House is worth LESS now than our last re-fi, which of course was a 2 year arm, and now in les than a year WE have to re-fi again, with CRAPPY credit! whew. Anyway, this what I have learned so far:
Your lender does NOT want to foreclose on you, it takes alot of time, money, manpower to foreclose - on their end. So, talk to your lender. They are just people - maybe even in the same situation as you - tell them your situation, and they will work with you someway. Ours just asked us if we could make the current late payment over 3 months - we of couse said yes, but I don't know if we can.
the other option is the Short Sale thing. Contact a realtor, see if they will work on a flat fee - say 10,000 total for buying and selling agent. Say you want to do a Quick sale, or Short Sale. They will put it on the market, for a "cheap" price, sell it quick, and your lender is acutally the seller. They will have to OK the price. They should accept a lower price than what you owe, so they don't have to go into foreclosure procedures.
I've heard we should avoid forclosure as much as possible. It basically guarantees you will not get another mortgage any time.
We are basically just staying in contact with our lender, and leaning on that short sale thing soon! Good luck my friend!!
I feel your pain.I think it is a crime to sell first time homeowners arm loans but that's my opinion.now your exit strategy -place a small ad in your local paper,'' motivated sell wants out ''and, see how the phone rings off the hook.keep in mind your looking for a buyer to take the property off your hands with a short sale.this will allow you to save your credit and allow you to purchase another house in the future.I have assisted many owners in the same pinch. good luck.
sorry to hear of your situation. many people got caught in the ARMs.here is a website that lists all the state laws and procedures for foreclosures
http://www.foreclosures.com/pages/state_...
just click on your state and it will answer many questions for you about the timeline. remember it is different for each state.
do not use something like creditsolutions...they only wnat more $$$ from you and this is something you cannot currently afford.
the federal law gives you the opprotunity to again purchase property 24 months after the foreclosure date. (with the rest of your credit being good). banks and mortgage co.s usually only look at 12 month history.so you should be good to go in 2 years (and i know you'll stay away from ARMs).
also remember -whomever purchases the home becomes responsible for any taxes and/or liens on it.
Mortgage companies will not come after you once in foreclosure.a home loan is not a typical loan (like a car etc)...it is a deed and is treated (under federal guidelines) differently.
find yourself a new place to rent for a couple of years and keep the rest of your credit clean - you should be able to purchase again.
good luck (know you are not alone--this is happening everyday across america--it is disasterous!).
good luck :)
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