Son Losing His House....help!
Thanks to all who post to the website. These really help me. But, of course, I have a special problem.
My son is 4 months behind on his house payments, due to sickness. He filed Chapter 13 bankruptcy last year about this time. He has been able to keep his payments up on the bankruptcy, but not on the house. He has a wife and 2 teens, who do not want to move. He says the bank sent something this week about the house being in foreclosure. I have many questions:
1. Is it too late to do a short sale?
2. If I purchase the house in a short sale, is it against the law for me to rent the house back to him?
3. If it is too late for a short sale, can I still negotiate with the bank to keep it from going to the court house steps?
4. I also add that there is also a 2nd mortgage on the property held by the same bank as the 1st mortgage.
5. The property is valued at $130,00. He owes approx. $120,000 on both mortgages. I think $80,000 on the 1st. What can I expect to be able to buy from the bank?
Thanks for anything that will help me decide a path to help this family. Thanks, Dianne
Thank you Bruce for your comments. These things did help to straighten things out in my mind. If anyone else has a comment, I would certainly like to hear it.
Dianne
the other option
if his cituation is about to change for the better. catch up his payments
correct, the easiest and cheapest thing to do might be to just bring the loan current and out of foreclosure (paying off the amount of late payments). but as was stated before if he cant make the payments then why would he after you bring his loan current? but if you do decide to go that route then i would definetly get some sort of collateral, ex. title to the cars, or the house itself.