Bankruptcy And Foreclosure
I have declared bankruptcy (discharged)on my property
and it will probably be going into foreclosure soon.
My question is does anyone know how this could effect
me financially? I live in washington state the lenders are in tennessee. also can I do anything to prevent them from coming after me for any money since we are barely surviving now and another bill would kill us.
Your attorney might explain the bankruptcy process, and remaining financial liability... if any.
You could also market your house to investors that might be interested in doing a short sale. By doing a short sale or saling to an investor this will keep a lender from coming after you personally. Any house that goes into foreclosure and doesnt sale, then the lender can come after you. If the house is near foreclosure, look for letters and postcards from investors and see which ones can offer you the most benefits for your situation. Give a little and you may receive a lot. [ Edited by charlotteinvestor on Date 02/26/2006 ]
The bank has the right to pursue you for any deficiency-- in other words if an investor does a short sale, whatever amount he negotiates below your mortgage balance is the amount that the bank can pursue and end up garnishing from your wages. If your home has equity, you could try an equity split with an investor as a quick sale, but to maximize the money back to you, you might want to list with a realtor and get full market value.
First thing is to run your comps and determine Worth Value...
Second would be to determine your Money Value
Third if you can buy it for less than your Money Value then you should put it under contract...
Forth would be to learn the various methods you could use to buy it...
Maybe that is the first thing, I get confused sometimes...
[addsig]
Bump !!!!!
Does anyone have any replies , or answers.
Thanks Leaseoptionking & Shortsalespro for your replies.
This question came into my mind , and your replies have helped me to understand.
I wondered what would happen if someone got hurt on that property or something happen to the house while the foreclosure process was still in process , and the homehowners were still living there but not paying any mortgage payments or taxes or insurance who would be responsible.
So if the taxes are paid a year in advance, everything would still be covered under the homeowners policy , Is this right or wrong ?.
Just curious about this.
By the way, if the policy is still in force (i.e. premiums are paid), the policy will protect the mortgagee (and potentially the homeowner, depending on the state and the specific contract language)...
[addsig]
Thanks Norrist for your replies.
So what I gather from all the replies is that the original homeowners ins. policy is in effect until the forelosure process is over because it is paid a year in advance.
In Ohio it takes about 6-9 months for the foreclosure process to be complete, so I take it the ins. will be in effect during that time, because it has been paid through that year.
This is good information to know, hope someone else gets help from this also.
Just some more knowledge I have gathered.
It may only be paid in advance if it is escrowed. If the homeowner pays it, they may have let it lapse...hope this helps...
_________________
Best regards,
Tim[ Edited by norrist on Date 03/03/2006 ]
Thanks for the reply.
I was talking about insurance that is escrowed.Yes it does help.
Tell them you will rent the U-Haul truck. You get the truck yourself and pay the U-haul company instead of giving them the money.
After everything is packed on the truck , give them the cash for the art work and appliances so they will have rent money.
I think they call it cash for keys.
Just my thought on the matter.
Hey Louis,
It sounds like these people have some problems. Please, Please, Please dont let their problems become YOUR problems. You are a real estate investor who is purchasing a property. You are not their mommy who is going to bail them out. I might arrange for a moving company to move their property to another location. If they can box it all up, a moving company should charge about $200-$400 to move all their furniture and boxes within the city. I might offer them a few $hundred$ when the truck is pulling away. That is all.
I work mostly with foreclosure and divorce situations and there is a great deal of emotions on all people involved, including myself. I always have to pull myself out of the picture because I start caring too much. Every time that I do, I get burned. I guess what I am trying to say is that you can help them get out and maybe get them a little cash and thats it.
They are probably going to have to move in with relatives if there is no job, no money, etc. Let the relatives take care of them. I know, I know it sounds a little cold or rude, but you did not get them into their current situation. You are helping them by moving them and giving them a little cash.
Thanks for the advice. I had been thinking about getting a moving company but was stuck on where the folks would end up moving to. All I could think was that their problems would become my problems. I will take a strong approach that it is their responsibility to find a place to live -- they got themselves into this mess, they can get out of it.
First - how far along in the short sell are you? Do you have reason to believe that your short sell will be approved?
Second - You are going to have to spend money to get them out. I have never gotten someone out of the house without some money. Think about it - they are in foreclosure. What does that tell you about their financial position, their ability to make sound financial decisions, and their ability to realistically assest their financial situation?
Sounds like you want to do two short sells without spending a dime. You have not given them any money and have not promised to give them any money so why the hell would they want to leave a free place to live?
I have helped people find an apartment. I have helped people pack their stuff. No ... I do not get personally involved in their personal life ... but as a business this is what I have to do to get the house. I have always given the unwilling money to move. There is no other way. Of course you do not give it to them directly while they are still in the house. But you can give it to the apartment complex, or the moving company.
Brenda
Brenda
Have there been other sales in the neighboorhood lately?
Yeah...Good comps which is what attracted me to it. 4 sold in the last 120 days. Longest DOM was 70. Others were 2, 16 and 48. Two of them had recently been renovated and made the fmv on my prospect better than I had guessed, (before actually pulling the comps).
There are 2 in there for sale now, listed with realtors with prices that reinforce the price I was thinking of asking when ready to sell.
All the stats look good...
Yes, The other thing I have a question w/. I want to use an assumable contract w/ the seller. I know there are not that many lenders that accept that. What is your input on that? I have a buyer for the house in the addendum section how would I word it to say I will be receiving a transaction fee at closing. Which would be what the seller sold it to me and what I am selling it to the new buyer.
1. Put an assignment clause in the contract with the seller. (ex: this agreement may be assigned to another buyer, etc.)
2. Assign the contract to your new buyer (using an assignment of agreement contract).
3. Collect your "assignment fee" upon assignment to new buyer or wait until closing.
The Assignment of Contract will refer to the original purchase and sales agreement (that you have with your seller). It will basically say that your buyer is stepping in and taking your place in the transaction for a fee of course. I would speak with an attorney to get an assignment of contract agreeement.
Any closing costs that you would have paid would now be paid by the new buyer. The seller would still be responsible for his/her closing costs.