I have a question about foreclosure.. need help fast?

Question:

: I own a house that I can no longer afford to keep up. The last owners didnt keep up the house and I don't have the money to fix it, plus i bought it as a foreclosed home. I've tried to sell it, but I am not sure it will sell, i have already re-fiananced. i am considering letting it be foreclosed. I know it will go on my credit report, but at this point have run out of options. My question is this: What does the bank ask of the owner during foreclosure? Other than bad credit what charges or things can the bank do to me? I understand the bad credit stays with you for 7 years. When the bank takes the house, if they cannot sell it for the amount on the loan do I have to pay the difference? I really need some answers and obviously I can't afford an attorney or go ask at my bank! Thanks for anyone's help!

Answer:
I would need more information about your exact situation in order to help devise a plan to correct your problems and meet your goals.

You've refinanced already after buying it as a foreclosure, but that doesn't tell me how much if any equity you have left in the property. A construction loan, based on the ARV (after repair value) might be an option. Too many detailed questions left unanswered.

I suggest you do everything possible to avoid foreclosure though.

If you have legal questions try: http://www.laborlawtalk.com

You need to call up your bank and talk to whomever is dealing with your loan. Banks would rather help you out (lower your payments, interest, etc.) rather than lose money with a foreclosure. Talk to them or even talk to a credit counseling company. There are several places out there to help you out for free.

I think they will take the money from the sale of the house and deduct it from the original amount of your loan. Then turn around and charge you for the difference. It will show twice on your credit report. 2 negatives!

Hello -

May I ask if you have any equity in your home? If you have $25,000, there are multiple programs that would purchase your home, and then lease it back to you at a lower rate for one-year.

This would give you 12 months to decide what you may want to do next and at the end of 12 months, they allow you to purchase the home back. If your local market looks like it might pick up or the home appreciates in value, this could be valuable.

Then you can also use a mitigation service. In this case, you would have an advocate that would work out lower payments directly with your lending institution without ruining your credit.

Typically when if the bank forecloses on your home, it will be sold at auction for a very low price. On average, you would be responsible for not only the difference but all costs involved including legal, taxes and auction fees.

If you like, please email more information about your situation, and let's try to find a better solution.

Best Regards,
Darren Meade

The worst thing you could do would be to let it go into forclosure. You will owe the difference, and it will have a horrible effect on your credit! the best thing you can do is to sell the home. Get an agent, and let them talk to the bank. if the bank knows that you will be selling, and they will get their money in full, then they will be more receptive, and your credit wont suffer.

I have a question about foreclosure.. need help fast?

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