Advice to Others on Foreclosure & Bankruptcy (ShortOnChange.com)

Advice to Others on Foreclosure and Bankruptcy (12/10/08)

Disclaimer: I am not a lawyer. I am only publishing my interpretation of my situation. You should seek your own legal representation for your own particular situation. Do not rely on my opinions or statements for your own purposes as state and local law varies as do individual circumstances.

A lady recently emailed me for advice on how she might handle her own financial problems which involved a possible foreclosure. Here is the email that I sent back to her as I thought it might be helpful for others as well.

Good afternoon Noah,

I've just found your web site today and spent all morning reading all your posting. Thank you very much for sharing a valuable information.

I'm very stressed out at this point, as I'm worried about foreclosure and losing my home. I'm one month behind on my mortgage payment and I'm still in my house. I live in Florida, and I don't really know what to do next. I can't afford 2500 mortgage payment anymore each month. I have three kids and mother [living] with me.

I guess my first question is Do I need a lawyer even though I'm not considering a bankruptcy? Should I stay in my house any longer until it's foreclosed or should I start looking for a rent already? I've heard that I can stay in my house up to 12 month. What happens next? I really don't know. Perhaps you know a lawyer or a firm that could help me please advice.

-ShortOnChange.com Reader

_________________________________________

Hi ShortOnChange.com Reader,

From my experience, I could have lived in my house for about ten months with no payments. It really depends on your bank and the number of foreclosures your county has to process. Your number of months before foreclosure could be shorter or longer than mine. There is no way to tell for certain.

Assuming you cannot afford your home, where will you go? If you will need to rent a place, you should consider renting it now and getting it ready while your credit is good. Another month, and the unpaid mortgage notes will start showing on your credit report. A bad credit report will also cause the utility companies for your new place to require deposits - another outlay of money you will want to avoid.

If you are going to move into a place with family or friends or such where you will not have to put your name and credit report on an application and you will not have to put the utilities in your name, you might not need to worry so much about moving anytime soon. You might be able to wait until you are given a date for the foreclosure hearing. I had 30 days after my foreclosure hearing before the foreclosure sale date (this is for Escambia County, Florida).

I have a lawyer handling my own foreclosure. He handles the paperwork and the court dates for the foreclosure hearing and such so that I do not have to show up in person. This is handy as I have to travel a lot for work. Plus, with the foreclosure, you will have to fill out paperwork that can be tricky and might cost you certain rights if they are not filled out correctly. You will see on my blog how much my lawyer has been charging me. It can add up quick, but I think it is a necessary expense. If you hire a lawyer, hire a local one that you like to talk with and feel comfortable speaking openly with. Do not let them talk you into anything immediately. Always ask them your options; go away; think about it and then let them know what you think is best for your situation - they work for you; and yes, they have the law degree, but they do not always have your best interest at heart. They have kids to feed and a Mercedes gas tank to fill up.

A foreclosure will cause you a lot of stress. I know no way around this. Just be aware that you have extra stress from this and try to find some creative way to alleviate it - stay away from vices (gambling, drinking, sex, drugs, etc.). Take up a hobby like piano or painting. Take a lot of deep breaths. These will do you good.

I'll be glad to email anytime. Take care, and do what is best for you and your family.

Noah

Noah@ShortOnChange.com
http://www.ShortOnChange.com

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