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.
Foreclosure
is the process whereby a lien holder gains ownership of a
property once a borrower defaults on the financial obligation
placed against that property. The lien holder may then hold,
sell or use that property as they are allowed by state law.
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Foreclosure laws vary from state to state. In general, though,
the state laws revolve around whether or not a state allows real
estate transactions to be based on mortgages or deeds of trust.
Depending on state laws, foreclosures may involve judicial
foreclosures or non-judicial foreclosures or both. States that
allow mortgages typically involve judicial foreclosures. Deeds
of trust states generally involve non-judicial foreclosures.
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The time
period required by the different foreclosure methods have widely
varying requirements as well. Some states have a foreclosure
processing period of less than one month. Some states have a
foreclosure processing period which may come closer to ten to
twelve months. There is a wide disparity between all the
different states in the time period required to close a
foreclosure.
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Most
states require foreclosure sales to be publicized. The period of
publication may vary from zero to four months. The means of
publication vary from state to state as well.
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Most
states allow a certain period of time in order for the prior
owner to redeem their property from whoever purchased the
property. Some states do not allow any time for redemption,
thereby making any foreclosure sale final with no means for
redemption. Redemption periods typically range from no
redemption to a one-year redemption to up to four years for
redemption in other states.
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For all
foreclosures, there are varying degrees of negative impact on
individual credit reports. Individuals may also face liability
for foreclosure sales that do not cover the full amount of the
original mortgage(s). Other negative obligations may arise as
well for a foreclosure.
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You might be in the situation where you just need to sell the
house. You might consider ForSaleByOwner.com as a means of
selling before the banks foreclose on your property.
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Click Here for Books on Foreclosure
Click Here for FREE
Videos on Foreclosure |
Your main question if you
are facing possible foreclosure is probably "What do I do?" This
is a big and important question. Read here what I have come up
with (Noah's Blog Entries). |
Related Blog Entries
Foreclosure Hearing
Liquidating Assets Before Bankruptcy
Seek
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Same as Get a
Lawyer
Before Bankruptcy, Before You Even Miss a Mortgage Payment
Should I Use Credit Cards for Everyday Expenses?
No Mortgage Payments for Over Six Months
From Mortgage Payments to Rent Checks
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Quick Update on Noah's Foreclosures:
As of 02/13/09, I have lost one house which was my primary
residence to foreclosure. I stopped making mortgage payments in
November of 2007. The foreclosure was finalized in September of
2008. In February 2009, I received a 1099-C for the Cancellation
of Debt for the secondary mortgage. I also received a 1099-A for
the Acquisition or Abandonment of Secured Property for the
primary mortgage. The
Mortgage Forgiveness Debt Relief Act of 2007 may allow me to not
have to pay tax on the values stated on these two 1099
statements. The foreclosed property has not resold. It is
currently listed at less than half the value which I bought it
for in 2006 and still no interest from the local market (there
are about twenty other brand new houses in this same
neighborhood that have never sold since being build).
My credit report has several bad marks against it relating to my
real estate foreclosures. All credit cards and car loans are in
good standing. My lower credit score has caused my credit cards
to cut my available credit by more than fifty percent (50%). My
lower credit score has required me to pay a deposit on a new
utility connection.
I have two other real estate properties that may go into
foreclosure this year. I have not made mortgage payments on
these two condos since November 2007. One is with CitiMortgage.
The other is with Wells Fargo. Wells Fargo is currently working
with me on a Debt-to-Income Mortgage Modification Application.
The new administration in D.C. is working on new legislation to
address foreclosures in the U.S. I am anxiously awaiting
details.
I have a lawyer working on my foreclosure dealings and a tax
accountant working on my taxes. I highly recommend you seek
professional assistance for your legal and financial needs.
See Noah's Properties
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