Can I buy MY foreclosed home back from the bank?
Submitted by viclucaj
from MI
- 02/02/2009 - 2:16pm
Very unique situation: My wife and I are in the middle of the foreclosure process. Both of the loans are in my wifes name but I am(or was) on title. Outstanding liens total $320,000 - 1st lien holder accepted $160k pre auction on a short sale offer that fell through because the buyer was unable to get financing. Auction was held 2 weeks ago and being that we are in Michigan we have a 6 month redemption period.
Here is the question: Can I (the husband), qualify through another bank for a loan to buy essentially my own home back? Logically it makes sense for all parties involved. Bank A(lien holder) gets to unload the house, Bank B(new bank) gets a new loan, and my wife and I can stay in our home, for half of what the mortgage was. I would offer the same ($160k) as what they had previously accepted from another buyer. 2 hurdles seem to be my current address, which is in foreclosure AND the property trying to be purchased and if Bank A accepted 160k from another buyer, would they accept it from me if I was able to obtain new financing? Lastly, what happens to the 2nd lien holder? Are they SOL?
Thanks and I hope I painted a clear picture of this unusual scenario. Looking forward to your reply(ies).
- Still Hopeful in Michigan
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Hi - I've actually sold a number of homes I've purchased at auction back to the homeowners, so this isn't as unique as you'd think. The primary issue is that the law often states that the wiped out debt can re-attach in the event the homeowner regains title to the property. These laws were put in place to try to keep property owners from using foreclosure to strip debt away. For the particulars in your state you'll need to talk to a title company or attorney.
On the deals I've done, the buyer has used a close friend of relative to hold title.
Sean, are you talking about that the mortgage debt that was on that property before selling at the courthouse can re-attach or did he mean any debts they had and didn't pay such as a car loan?
I just got off the phone with both a CAR attorney and a title officer and asked them about this because we just purchased a property here in California at the courthouse and the owners who lost it to the bank are interested in purchasing it back. But because I saw your answer on the forum I called the CAR attorney and the title officer to ask them about this and they aren't familiar with a law that the debt can re-attach in the event the homeowner regains title to the property.
Thanks
Just the debt secured by the property. If the title co that is handling the sale is willing to give your folks an owners policy insuring them against it, and they can get a loan, I say go for it.
I learned about this after I lost months trying to help an owner only to find out the lender wouldn't fund because they'd be junior to reinstated debt.
I need a equity partner. I am in the middle of getting an intent to cure amount on my home in the Colorado Rockies. I have $1.4 million in equity!! I need immediate help. Thank you, Wil
How much do you need? I preferrr 100% undivided interest with an option by you to buy back during a period.......if you do not exercise buy back you lose option price. Make sence?
I will be in Longmont, CO in May and in the rockies in July
Do you help people repurchase their homes on contract? I lost my home on August 5th and am looking for private financing. I will be able to repay the money within a short period of time and am willing to rent my home in the mean time. I am willing to negotiate any realistic option. I am a widow with 4 children and have been in this home for 17 years and only had financial difficulty for the last few years. If you are able I would appreciate any advise.
go to www.photoshow.com/watch/GJ8gS2ZZ and look at Moondance.. copy and paste.. looking for long term equity partner.
i was behind in my mortgage with an ARM and an investor came to assist. they now own the deed to my home and refinance to replace the ARM. What steps can i take to buy my home back if investor is reluctant, or is this possible
Find out what the laws are in your state. In California you have recourse and should know your rights. Check out CA Civil Code 1695
You can buy foreclosures for as cheap as 30% or 40% below market, but most foreclosures sell for 5% below market.And lender deals typically include title home insurance, which removes much of the risk that accompanies buying homes earlier in the foreclosure process.
I Lost my home to foreclosure was sold November 2009 , please what should i do I am in the state of Virgina. what i didn't understand is, i was working with the bank about saving my home and they've told me they're going to help me so i can stay in my home .I send them all the document they asked for (pay stabs , bank statements ,ex....) I've been dealing with this since July now they're saying OPS we sold your home . HELP I HAVE TWO KIDS I NEED TO KNOW MY RIGHTS NOW I CAN'T EVEN RENT BECAUSE MY CREDIT IS GONE TO !!!!!!!!!!!
A similar situation happended to me. My home foreclosed and was sold at sheriffs sale without my knowledge. it was very quick and happened before i knew it. i had almost no knowledge of this. what you first need to do is fins out who now owns your home. your mortgage company should be able to tell you this. also DON"T walk away!!! if you still want to keep your home fight to the end. after you find out who owns it now contact them immediately and tell them you wish to repurchase your home and what would they be willing to do to work with you. I was blessed with my family's help and was able to repurchase my home and keep it. It took a year and alot of phone calls everyday. keep track of everyone you speak with. of every 10 people you talk to maybe one is willing to listen and help. just beware of any scams and peopole telling you they can help you for money upfront. I was scammed out of 500 dollars for a company whoe could not do anything for me. they then wanted an additional 2000.00. DONT give up hope....also consider contacting your attorney general. thats what they are there for. I wish you the best of luck...
I am in Ga., my foreclosure happened in Oct., my financial situation has changed since then. Can I still negotiate with the bank?
You will want to consult with an attorney on this matter. We are not familiar with Georgia Foreclosure Laws.
I've got almost situation with --- Suntrust said they were going to help me so I submitted all the paperworks... I called them every 2 weeks for 7 months
then I got a sale date notice. Lender said they will have it postponed -- but still the property was sold-- back to lender. But you know what I won't stop fighting, I submitted another offer to them to buy back the property. i know it's crazy but nothing's impossible.
I was able to get my other home modified, so I still feel optimistic about this one.
how can i purchase my home after it has been forclosed
Hi Roger,
After a foreclosure it will take 3 years (under current FHA loan guidelines) for you to qualify for a home loan after a foreclosure. You could consider using private or "hard money" loans but you will need to be prepared to put a substantial amount down as a down payment (typically 30% LTV). If you have a spouse or a relative with good credit that is willing to purchase the home on your behalf that is also an option.
The toughest part about trying to repurchase your home is finding a lender that is willing to lend you the money.
Note that any debt wiped out by the foreclosure sale may re-attach if you purchase the home back. If you do find a way to purchase your home back, te sure to get an owners title insurance policy stating that insures you against this possibility. I've tried to sell a number of homes back to prior owners, and this has always been the primary issue, and has killed almost every deal.
Probably easier to move on.
Does the sale of my property by going back to the bank, after 364 days from the original notice of trustee sale date, stand, when:
1.) There is a Les Pendes placed on the title, from a credit company that was overlooked by the title search, and put in the courts for first position on my loan. ( I was unaware of this judgement, ($45,000) for it was my ex-husband from 2003), however the title company missed this one, and another one for $363.00. The creditor requested payment from title company, and the title company told them to take a flying leap. It has remained a stale mate since 2006. I just recieved a mortgage modification from saxon, and was to make my first payment on May 2010., when Saxon informed me that Ocwen will now be handeling my loan, and to expect to hear from them in the next 30 days. Remember I was to pay the first payment on the first of May. But I had no place or loan number to pay it too. Called Ocwen on May 10th. They didn't have my loan information or modification, however they did then assign me a loan number, and must have got something from saxon, because it was the amount we agreed upon. So made my payment, but check was returned in the mail on June 2,2010. No explanation, just returned un cashed. Same day, I recieved a Quiting of title law suit, from my trustee company ( they changed title companies, in between time, but never served me, or gave public record of this change) but I was being sued now to have all rights lifted, and for the courts to order me and creditor as Grantor to give or interests back to the bank. )
I found out that they did indeed revert the home back to the bank on May 26th the day before the 365 day deadline came up, to refile all the paper work again.
In the mean time, I am recieving information from Ocwen, with payment coupons and loan modification paper work . On July 21 (registered Mail to show proff of insurance.) I was served quiting of title paper on June 11th, almost 2 weeks after sale of home. No were in paper work does it discuss the home going back to the bank, and they even list me as Grantor, while asking the courts to relieve me of any interest in the property.. I have not recieved any information on the sale of my house from anyone. I found it out looking up info on the judgments. My questions are these.
Under these circumstances, would the reo still be legal and binding if
1.) title is clouded, and not in first postion?
2.) it lender does deciede to pay judgment, would it be valid then?
3.) does the lender have to notify me at all, being that we both agreed to remove the home from the auction that date.
4.) that the loan had a solid clad modification, and it was the servers fault to have chnaged my loan over? Is there any recourse for borrower in regards to a modification in place,and lenders have to be obligated to adhere to the modification, or can a lender just up and sale a home, without knowleadge to the homeowner, and without merit, have the trustee of sale paper 364 days ago, be his only obligation to let me know the home was up for sale, and the continued exploit to secreatly remove me from my home?
I would appreichate any help. I have had a consultation with an attorney, and I believe we will secure a instrument of hire, but he just had to look all over the paper work. I ask you all , because when things get this complicated, it is sometimes better to have more than one positoin in the all important world of law.... thank you for your time, in helping us out there that have made messes of our lives, even if we are not totally to blame, I guess I could have done something differnet. '
pinchthepenny@gmail.com for private consultation and information. thank you again
I can tell you that a lis pendens in and of itself does nothing to stop foreclosure. It simply indicates that a lawsuit is pending. A cloud on title also does not automatically stop foreclosure. It is legal for a lender to postpone a sale up to a full year.
The only thing that may help you is if you truly had a "solid clad modification" in place. If that is the case then they would not have the right to foreclose so long as you were honoring the terms of that modification (as in that case you would no longer be in default). If that is the case you should quickly contact the trustee and send them proof that you had a loan mod in place, AND that you had done everything required under that loan mod. Since the property went back to the bank it is fairly easy for them to rescind the sale.
I just lost my home to foreclosure last week with Ocwen. I have been trying for years to get a mod with Saxon then when loan was sold to Ocwen did the same thing. I submitted packets for mod only to be denied. I was approved for the inhome which was too high, and the principle was not changed. I am in los angeles, Ca and my prop went from 700k to 340K, Pretty low. Ocwen turned me down saying made too much or not enough. I paid someone to assist in getting my number right, and that didnt help. Lastly, i was turned down because they didnt believe i lived in property. They requested proof with utility bills and letter from me stating i did. My house was still sold, saying papers came in too late, and when i asked again why they said that wasnt the reason. NOW, i really want them to give me back the house. IT was their fault. IS this possible? A guy wants to charge me $500 upfront to use his powers since he knows Ocwen, but I dont want to pay him if its something i can do. He wants upfront but he cannot guarantee me.What should i do?
HI Stef,
I would not pay anyone a dime unless they are an attorney and the intent is to file a lawsuit. Even then the possibility of getting the sale rescinded based on the denial of a modification would be slim to none. We completely understand that this is very frustrating but there is no law that the lender must modify the terms of the loan. This is completely at their discretion. We are not seeing large principle reductions which means that even if you get a modification you will be strapped with negative equity for years to come. Sean O'Toole wrote a blog post about this specific situation. Go to http://www.foreclosuretruth.com/blog/sean/loan-modification-denied-dont-.... I personally know the people he references in this blog post and can tell you that although they were sad to lose their house there is a tremendous amount of relief that this is over and they can restart their lives.
If you want to continue to pursue this matter and feel very passionately about the fact that you were mistreated in this process we would encourage you to contact your local elected officials and tell your story. These are the people that represent you and have the ability to make changes or potentially help you if you still want to pursue a rescission of sale.
Good luck and keep us posted on what happens. We are certain that others reading this post may benefit from your experience.
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