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Foreclosure
The process by which the holder of a mortgage sells a property after the debtor defaults on their loan for it
2,433 Questions
What to expect after foreclosure?
You can expect to have a big hit on your credit rating. This will last as long as 5-7 years unless you hire a professional to rebuild your credit. You will most likely not be able to qualify for a home loan for at least that time.
How do you get your down payment back on foreclosed property?
Your down payment was used to purchase the property and was paid directly to the seller. You don't get it back.
How many foreclosure houses are there in US?
In 2007, the Census showed that there were around 110 million occupied "housing units" in the United States. RealtyTrac estimated that 1/416 households in the US received a foreclosure notice in August 2008. That means 264,000 households received such notices. Assuming that it takes 6 months to sell a foreclosed house, I estimate that there are around 1.6 million "housing units" in foreclosure.
Eric Fisher, Professor of Economics, California Polytechnic State University
You will need to check with your individual state laws. Generally, if you were only added to title via "QUIT CLAIM" they can not come after you for the mortgage liability.
If you are not on the mortgage, you are not on the loan. However the property will still be gone.
Unfortunately there is more to it that just having your name on the mortgage. I am personally aware of a couple who list the husband (because he had better credit history/score) as the sole holder of the mortgage, however when the payments fell behind and the mortgage went into default the bank came after BOTH the husband and the wife and attached the debt to her although her name was NOT on the mortgage.
The stated reason was that legally she was obligated for the debt because she occupied the property with him and it was listed as their primary residence. This may not be legal, however when they went to an attorney, he suggested that the best he could do was to request that the mortgage company remove her name as a "courtesy" and there would be no guarantee of this.
Do not be surprised if you are attached to the mortgage and are negatively effected (i.e. credit history/score) although you were not on the loan, especially it is your primary residence.
Even if you fight to be removed (this will require intervention from a lawyer) and are successful however the damage had already been done and her credit had been effected.
How can you buy a foreclosed or bank owned property?
I mean, can anyone with cash basically look them up and make an offer?
There are a few ways that one can purchase a foreclosed home. Some of these would include getting preapproved for a mortgage, finding an agent that specializes in foreclosures as well as knowing that the home is sold as is.
Payment address for countrywide mortgage?
Conflicting information:
BOFA 1-800-669-6607 says Attn: Payment Processing, P.O Box 10219, Van Nuys, CA 91410-0219
Not
Physical Address: Remit regular payments to:
Attn: Payment Processing
P.O. Box 660694
Dallas, TX 75266-0694 Countrywide Home Loans
Attn: Payment Processing
7105 Corporate Drive PTX-B36
Plano, TX 75024-3628
What happens if nobody bids on foreclosure?
The bank who forecloses becomes the owner of the real estate. They then sell the property as an "REO asset" to try and get the money back to payoff the mortgage. REO stands for "real estate owned."
There are mortgages that allow this. Ask your lender about an FHA 203K loan.
Can you still do a deed in lieu once foreclosure papers were signed?
Majority of the time it depends on the investor of your loan as well as the company that services the mortgage. Most companies will require that you have deed in lieu paper work submitted a certain amount of time before a foreclosure sale.
How many single family homes are there in the United States?
It may be that the terminology is different than single family homes. However, barring that, here are some U.S. Census numbers for you.
In 2009, the US Census Bureau reports all housing units totalling in at 130 million 159 thousand.
Also in 2009 91,241,000 total housing units for single detached and mobile homes in the United States with 79,918,000 total occupied year round. And of these, some are renters and some are owner occupied.
What is the difference between deed in lieu and a short sale?
As a distressed property owner, you may hear about many alternatives to help homeowners avoid foreclosure. A deed-in-lieu of foreclosure and a short sale are alternatives for homeowners to avoid foreclosure. They both, however, are slightly different and come with specific risks and benefits. Read on below to see a comparison of both of these alternatives to avoid foreclosure.
Deed-In-Lieu of Foreclosure
What it is: A deed-in-lieu of foreclosure is where a Knoxville homeowner deed their home back to the lender, who will in return release the homeowner from their mortgage.
Benefits: The lender promises to cancel any foreclosure proceedings. The homeowner avoids foreclosure and does less damage to their credit.
Risks: The lender could still pursue the homeowner for a deficiency judgement.
Why it could be the right choice: The homeowner will want to read the contract carefully to make sure the lender will not hold them liable for a deficiency judgement. While consulting with an attorney can be costly, having an attorney look over the contract is significantly less expensive than having a lender pursue you for a deficiency judgement.
Short Sale
What it is: A homeowner owe more on their home than it is worth. The seller negotiates with their mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
Benefits: The homeowner avoids foreclosure and does less damage to their credit.
Risks: Negotiating short sales can take a long time. Distressed homeowners will want to make sure they select an agent that has experience with the process and is able to do them successfully. Otherwise, while the short sale is being negotiated, the homeowner may end up in foreclosure anyhow. Also, the distressed homeowner will want to make sure they know the terms of their short sale and that the lender agrees not to pursue them for a deficiency judgement.
It can be difficult to determine whether a short sale or deed-in-lieu of foreclosure is the best option for you. While an experienced short sale agent will be able to provide you with information about your options, you should always be sure to seek legal counsel if necessary.
How does a house in foreclosure affect your credit?
If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.
The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
How long does foreclosures take in ct?
Recently, we have been seeing foreclosures take between six months and a year.
There are solutions, check out www.theroofproject.org The ROOF Project is a nonprofit providing homeowners and tenants FREE government approved help and advice regarding foreclosures.
NOTE: Watch out for SCAMS - You should NEVER be asked to PAY for foreclosure assistance. Check out http://www.loanscamalert.org for more information.
When your home goes through foreclosure do you still have to pay the loan off from the bank?
no...the note goes back with the bank...your credit is ruined for five years
If loan was paid in full prior to foreclosure. how do i get it off of my credit report?
If the Foreclosure proceeding had already begun it will remain on the credit and should show a zero balance. But it will continue to show the Foreclosure was in effect at that time. If it is still showing a balance contact the credit bureau to have the information updated. You must have proof in hand.
Sales mean is where we convey to customer and tell about the product specification and it feature and benefits.
Where do you go to buy foreclosures?
The best site on the web, without a doubt has to be WWW.GOVERNMENTAUCTIONS.ORG !!!
I just registered with that site and it showed me well over 3000+ foreclosure auctions in my area of Florida. They are based out of the USA, unlike many other websites that are abroad listing US government auctions, which to me seems very shady. GOVERNMENTAUCTIONS.ORG also has tons of other auction information like Car auctions, Jewelry, Electronics, and anything else the Government is auctioning off. Sweet Deal !!!
What happens to the all the money collected on a house if sold in a foreclosure sale?
The mortgage company gets the money.
What are the Repercusions of foreclosure?
My own home is in foreclosure (I am currently in the process of getting it out) and I can tell you from my own experience what the repercussions I have seen are.
* My credit score is terrible (low 500's). It had been good (700's) before my foreclosure. * I cannot get any loans or credit. * The interest rates on some of my credit cards has jumped significantly. From the research I did, I found estimates that you would not be able to buy another home for 4 to 7 years. It stays on your credit report for at least 7 years.
What are the Repercussions of foreclosure?
The repurcussions of foreclosure individually are: 1) your credit report is dramatically lowered, and it will be very difficult to get another mortgage in the future. 2) Even after the lender has foreclosed, they often still have the ability to put a judgment against you, which can lead to garnished wages, and will keep you from being able to purchase other real estate. 3) If the bank does not go after you through a judgment, they must report to the IRS that the they "forgave" the debt (if your house was not worth as much as your mortgage debt), and the IRS considers that to be income, and will tax you on it. But, as of early 2008 (or so), the taxable income (loan forgiven) is non taxable.
What happens to you if you allow foreclosure on your home?
If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.
The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
Two mortgages and foreclosure?
If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.
The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
