"In all things it is better to hope than to despair" - Johann Wolfgang von Goethe
Introduction
You're probably reading this web page because you're in financial trouble. You're behind on your mortgage payments and know foreclosure is imminent.
Perhaps you've already received a default notice from your lender similar to this:
NOTICE OF NON-PAYMENTWe have not yet received your payment as referenced above which was due on the first of the month. If you have not yet made your payment, please do so immediately.
Your first questions are likely to be:
- Now what?
- What is foreclosure?
- How does it work?
- What are my choices?
This Chapter...
is comprised of two sections.
- Foreclosure Facts & Figures
- Why Homeowner's Face Foreclosure
Generally, someone in foreclosure doesn't have the money to hire an attorney. If that's your situation, you don't have to face the foreclosure process alone and without guidance.
Many books and websites are written for real estate investors seeking to make money on foreclosed homes. Those books teach investors how to make money off your unfortunate circumstances, but don't address your situation.
This website will guide you through the foreclosure process, and is written from the defaulting homeowner's perspective.
If you live in California, Mr. Thompson is available for foreclosure counseling. If you have not been successful dealing with your lender or the process has overwhelmed you, he can help. Mr. Thompson is a California attorney and real estate broker and the author of Foreclosed Dreams, a Homeowners Guide to Foreclosures.
Too much to handle
Hello Ralph,I own 8 properties including my own home, several of which are worth less than the loans, and these have neg am. loans on them. I would like to give a couple of them back to the lenders, two lenders are private parties. I’m not behind on any payments or property taxes right now, but keeping up with them all, including the maintenance, repairs & vacancy, is killing me. Any suggestions??thanks
Re: too much to handle
Your 8 properties are considered investment properties. When you make an investment you take certain risks in exchange for the expectation of profits. There generally isn't any insurance against an investment going bad. The lenders doesn't want to take back your bad deals. Although unlikely, you may be able to negotiate a work-out with them. If your situation becomes dire, you may need to consider one of the bankruptcy chapters.
2nd Lien Holder Still Reporting Me Late 6 mos After Foreclosure
How long can a 2nd lien holder for a purchase money loan report late payments after the foreclosure process is completed? I purchased my home with a concurrent 1st and 2nd lien. Then my company closed and I lost my job about 4 mos after I bought the house. I tried to keep up the payments but couldn't find a job in time to do so. The 1st lien holder foreclosed and there was insufficient equity to pay the 2nd lien holder. So, the 2nd lien holder keeps reporting me 120 days late every month. How can I get them to stop so I can begin repairing my credit? Thank you.
I am in a unique foreclosure situation due to divorce
I am legally divorced from my husband and we own a house valued at approximately 165,000 which has been on the market. My husband refinanced the house 2x with his name only under the Mortgage. The new amount is about 130,000.00. The house isn't selling. My name is still on the title and the profits if sold will be split with me. My ex is planning on foreclosing and informed me before his first new mortgage payment is due. We had already filed Chapter 13 and recovered from this before the divorce. I think I may be financially liable since my name is on the original title even if the mortgage is now under his name. What are my options and legal ramifications? Thank you Claire
Unique Foreclosure
If you were not on the loan then you are not liable for the foreclosure. Being on Title means you have ownership interest. You have to have signed the loan documents agreeing to repay the loan to be liable for the loan. You probably signed the "Security Interest" which means that you agreed to allow your Ex to finance the property but doesn't require you to repay the loan. Your only liability is that if the equity in the property is insufficient to cover the loan payoff pluse fees then you would lose your ownership interest in favor of the foreclosing lender. You should be fine.
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