Foreclosure

Submitted by Kathy from CA - 02/05/2010 - 7:54pm

I'm not able to aford living in my condo anymore. If I stop making my mortgage payment as well as Association payment, what's the procedure for foreclosure? When do I have to move out?

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Comments

Submitted by CC - 02/05/2010 - 11:14pm

Have you considered a short sale?

Submitted by Kathy - 02/06/2010 - 6:07am

Yes, my short sale was approved but the buyer backed out. I don't want to re-market my place because I'm running out of money and everything takes so much time. Soon I'll only have social security and savings to live on. I can live in an apt. and save about $500/mo. I just want out of here and foreclosing seems to be the only option. Do I just stop making payments? When can I move?

Submitted by CC - 02/07/2010 - 10:47pm

What city and state is your property located in?

Submitted by Kathy - 02/08/2010 - 7:06am

I live in Chino Hills, CA 91709. Thank you.

Submitted by Kathy - 02/08/2010 - 7:05am

I live in Chino Hills, CA 91709. Thank you -

Submitted by CC - 02/10/2010 - 5:29pm

Kathy,
Here is some info I found on this site.
Is letting your home go into Foreclosure best for you? The bank does not want to Foreclose and unless you have been several months late and an NOD filed then there is probably still time to work out a Short Sale vs Foreclosure.

Sean has been very clear about the benefits of a Short Sale vs Foreclosure. Here is another benefit in a memo from Fannie Mae - see the attached memo, dated, 6/25/2008 - it basically says that Fannie Mae will not allow someone to obtain a new loan for 5 years after a Foreclosure. However, they will allow a new loan after 2 years after a Short Sale (pre-foreclosure) - This is really good news for homeowners who have a tough situation with housing prices that have fallen who choose a Short Sale vs Foreclosure.
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

Regarding Mortgage Forgiveness Act - Below is a link to the IRS site with common questions and answers. Basically, for a pruchase loan for your primary residence, in the years 2007-2009 the IRS will be forgiving (ie not charging) taxes based on debt relief. This does not apply to second homes, investment properties and refinances above the original purchase value. If you dont qualify for the Mort. Forgive Act, then there is still the "insolvency" test, if you qualify.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

These comments are strictly my opinions and should not be relied upon as tax or legal advice. Consult a lawyer or accountant for tax and legal advice.

Regarding Short Sales - Please contact me if you would like additional information or would like a professional to assist with any or all aspects of the process. We are located in Southern California, however, have a network of professionals that can assist around the country. My e-mail is bob@inspiragroup.com or direct line 949-600-5404.

Please get the facts of a Short Sale or other options before doing a foreclosure.

BOB

Submitted by Kathy - 02/10/2010 - 5:32pm

Thank you - my 'short sale' was approved but the buyer backed out. I put my place on the market again.

Submitted by CC - 02/10/2010 - 10:39pm

Good Luck!

Submitted by Kathy - 02/11/2010 - 7:49am

Thank you, I appreciate your kindness!

Submitted by sandra mcintosh - 03/08/2010 - 6:01am

Good morning - rather than offering homeowners short sale - Why are the lending organizations lowering mortgages to market values?

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