"Thanks to ForeclosureRadar I am cancelling the foreclosure list service I've been using for 5 years ($90 per month), the sales comps data I've subscribed to for 3 years ($220 per month), and my assistant will now have at least 3 extra hours per day that she was using to track trustee sales to...
Kurtis Squyres, Palm Springs, CA
Comments
I am in the same situation. Looking for an answer to the same question. My house was in Nevada. Hoping Sean will have the answer. Where is your house located?
The key to understanding this issue is to know that you are liable for the loan AND the lender has a secured interest in the property. When a 1st forecloses it wipes out the 2nd's secured interest in the property, but it does NOT remove your liability for repaying it.
In some states, like CA, you may not be liable for the 2nd if it was a purchase money loan (a loan used to buy the house rather than refinance). The theory being that the lender made the purchase possible and should not have done so if they weren't willing to accept the house as their only collateral.
So the answer is NO they were not wiped out with respect to their ability to come after you for the balance. This is why we advise homeowners to do a short sale, and if that does not work, to stop paying on the 2nd first to force it to use its one action in foreclosure giving up their right to a deficiency judgement (at least in CA).
my home foreclosed earlier this year. i had 2 loans to make up the original loan. what happens tax wise about this. do i get to claim the loss? it sold back to the bank for 50-60K less than what i baught it for. i'm just trying to get things in order for tax season. i see that the house is on the market for awhole 150K less than what i paid for it 3 years ago. i'm just a little consfused you might say.
PLEASE HELP!!!
Hi Kisha,
It is unlikely you will have any tax consequences. It sold for less than you bought it for so there should be no capital gains. And with recent changes to the law you shouldn't have to worry about forgiven debt income.
My bigger concern is that the bank may be able to come after you for thier losses depending on the state you live in and whether or not the loans were used to purchase the house or refi. If you're in CA and they were purchase money you have no worries.
Hi Sean,
Question? Our first was paid off in March "08" and I had paid our 2nd for Dec and Jan, Feb...spoke to an agent in Feb, told him 1st paid off, husband laid off but we were working on getting the 2nd paid off in full.... He said no worries, keep in contact which I did, I believe sometime towards the end of april and sometime in may 08. I was handed notice of defaut in july 08,they say house was up for Auction July 7.08. I cannot recall the exact date but it was mid july. The next day or so I gentleman knocked on my door and said he was a realtor working with the lender and he said he would speak with them and maybe we could work something out. He called me within the next day or 2 and told me to call neal at residential mortgage because he said he was willing to try and work something out. Guess what,I called neal that same day and he said that he could not help us,that there was nothing could do...
We have an attorney who deals with realistate and we have filed the propper paper,etc, etc,.
I need some input.
Thanks,
Debbie
First, please tell me what state you are in. Foreclosure laws vary a great deal by state. Typically a notice of default has to be filed months before an auction is held, and you should have received multiple notices prior to the sale. Hard for me to imagine that you could have been so careless to let this get so far along with a recently paid off first mortgage. Hopefully for you that means the lender made a mistake.
If in fact it legitimately went to sale all of your equity could have been wiped out with, as Neal said, nothing you can do. Even if that was the case I would immediately hire an aggressive, competent, attorney who is willing to play hard ball with the lender. Have them look for any flaw in the loan docs, and file a lis pendens on the property making some claim regardless. Perhaps such aggressive action will get the lender to reconsider and cut you some slack (assuming the lender is now the owner, and not a 3rd party bidder at the sale - in which case odds are very much against you).
can they take that money from your bank?
what are the rules for rhode Island regarding foreclosure and paying future property taxes?
what are the rules for rhode Island regarding foreclosure and paying future property taxes?
Sean - We had a forclosure on a home in Oklahoma. It went to auction and the bank purchased it for 104,000. We owed 78,000 at the time of forclosure. Why would the bank do this? Why would they pay more than the appraised value and finally what should we expect next?
Hello, I bought a home in AZ @ 2 years ago, payed too much for it and now it's worth obviously less. Since then, I met a girl and am in the process for a new home...one we can live in for many years together(7-10). I am contemplating walking away from home # 1 due to late payments looming. My question is in reference to AZ law and the banks options. House #1 is under 2.5 acres and is a single family home. There is 1st and 2nd(used to buy not refi). Any help would be much appreciated.
Hi, I'm had my home forecolsed and i do know it was sold. So what now, what happens to me? I live in Kansas City, Kansas . It was my first home.
did you ever get a reply. I am in the same situation. What do i do now. The house was sold for about 30,000 less than we owe. Do i need to file bankruptcy.!? I cant pay back $30,000
i need some help as well. Thanks
my home was supposed to be on the court house steps the first tuesday in march. how do i know if it sold or not. we ha d a 2nd mortgage,the first is who foreclosed. i do not understand the what will happen nor what has happened. will we have to repay anything or will we have to repay the 2nd being that the first called the loan in. im confused and i do not know my rights. what is going to happen did my house sale
What state are you in?
I live in CA and we lost our home in 2007. It was auctioned off. but now we are getting sued for the second on the house because it was a line of credit not used to purchase the house. I never heard from the first. The line of credit was used for home improvements. can they garnish what little wages we have? Im just frustrated, if we had the money then we wouldn't have lost it. what can we do?
Doesn't sound like the line of credit was used to purchase the home, so you likely remain on the hook for it. Your choices as I see them are:
1. Avoidance (never a good plan).
2. Pay it.
3. Try to settle for less than the amount in full (I'd target 5 to 10 percent of the balance).
4. Declare bankruptcy and try to have it discharged in bankruptcy court.
A good bankruptcy attorney should be able to walk you through these options. By good, I mean one that helps you explore all of your possibilities, not just BK (the bad ones just start filling out the BK forms).
My home went into foreclosure in Georgia on Feb 3 this year. I owed $355K and was 40K behind... Just reciently i found an old marketplace information item that showed my home sold for $405K on Feb 3rd 2009.
What does that mean for me? Is that a profit for me?
Does that mean that the bank got their money and i am free and clear?
Will i end up owing anyone?
I am very afraid that i am going to get this huge bill sometime in my near future
I live in CA but the property that was foreclosed is in Navada, the loan were purchase money can the second lender still collect or sue me.
my house was recently sold to the bank and we were'nt informed or notified I was working with a morgage modifier and she told me there's nothing I can do except send the company a complaint what do you think
Similar situation--
We were in the midst of a loan mod and I even sent paperwork to the mortgage co on Monday, I was awaiting a reply, but, the bank sold our house at auction on Friday. Can we get it back? What can we do?
I have a confusing situation for me. I lived in NY state, lost my job, put the home up for sale, moved to MI for a new job. Lost the new job after three months. Issue is: the NY house is being foreclosed on, it has a first and second mortgage. I'm on unemployment, and have little assets. Will the banks come after me for the deficiencies after the auction?? I'm in a house in MI right now that we are buying under land contract, but of course have no deeds or anything in our name yet. One of the banks threatened to put a lien on our new house after the foreclosure. Can they do that? Since we don't legally own it yet? Very confused and concerned!
Hello,
I lost my job and we were forced to walk away from our home, in CA. We tried to work with the mortgage company, but they were unwilling. Even after we walked we asked (because of all the stuff we were hearing on the news...) if they could rework the loan to lower our payment, they said the best they could come up with was to lower our payment a hundred bucks...wasn't good enough for us financially...So now my house was sold by the bank in foreclosure, and we have heard nothing. Are we responsible for the balance? We owed something like 303 and it sold for like 165. How about back property taxes? We had to use all of our money we had from not paying the mortgage to move....Unfortunetly, I am still out of work, and this has me stressed, even more stressful is not hearing a word from the mortgage company or bank. Thanks for your help. Oh and it was just our first, no 2nd's...we only did a refi when times were good to update the kitchen and put a pool in and pay off some debt. Thanks in advance.
If it there was only one loan and they did a non-judicial foreclosure they can't come after you personally for the difference. The bank or buyer will take care of the property taxes, so you should be all set.
hi sean,
My house is in washington state, and it's not in good condition. I bought it to have it flipped and the guy that was going to finance all this backed out. My question is, if it forecloses, and the bank obviously is going to take a huge loss. What are the chances of them coming after me for the difference?
Thanks
I live in TN was house was foreclosed on May12,2009 what can i do to get my house back?
my condo goes to auction o.6-25-09 for $115, 000...We recieived an offer for $ 160,000 and the 1st will not postpone the auction...I can't believe the bank would take the 115, over the 160!!! what is going on here?...i live in ca.
Likely being handled by two different departments at the lender with the right hand not talking to the left hand. Keep calling, it isn't too late until the auction is over.
Hello. My house is not forclosed on yet! I have three days to make a payment before they start the forclosure proceedings. Not only am I behind on the payments but also the taxes. I moved out of it and moved into a house that I owned that is paid in full(that I was using for rental property) I then leased the house that I was behind on to bring in money to be able to make the payments. My lease occupants very first check bounced! His bank account has been frozen by the state and he cannot pay. Texas lease laws are complicated. It will take me months to evict him from the property. I have no idea what to do. The mortgage company says I make too much money for them to help me. But I'm so far in debt I cannot make the payments. My employer has not paid me in three months! What a mess. Any suggestions?
Seems hard for the lender to claim you make too much money if your employer isn't paying you. I'd try to aggressively work with the tenant to get him out. Knowingly bouncing a check is considered fraud and subject to criminal prosectuion in many states. You may find that threat leads to faster results than eviction. In any case I'd probably consult with an attorney if I was in your shoes.
if my wife pulled out all the money from her home ( 1st and second)to buy a new one and then couldnt sell her old house in ca. and then lost the home in forclosure. does she have to repay it all back or can she file for bankruptcy? do i have to file bankruptcy even do the house wasnt under my name? do we have to pay taxes on that money from the first house
Perhaps. Really not enough detail here for me to guess, and you really should seek the help of a bankruptcy attorney and accountant given the situation.
I live in California and have 2 loans with B OF A. I have been ill for 1 year, surgery......... Have not been able to work. I received a Notice of Trusteed Sale for August 17th. How many days do I have to move out? I have to file BK. Do I need to pay any money back from the 1rst. or 2 nd. refinancing loan? Thanks, U
If the 2nd is a refi and the 1st is foreclosing you will likely have BofA pursue you for payment of the 2nd in full. Bankruptcy won't save your house unless the only reason you can't make your payments is other debt that is dischargable. Be careful with when you file bankruptcy - if the foreclosure does go through you'll want to be able to have BofA's 2nd discharged. I'd recommend discussing your overall situation with a reputable bankruptcy attorney.
We live in CA and own a home in Riverside county. We owe $308,000 on our first and our second we owe $19,000. We bought the house with a no money down adjustable after three years. We refinanced at 2.5 years and the lender talked us into another adjustable,but this time at 10years. They also said it was good for us to take the 2nd out during the refi to pay off bills to make the refi happen. We are having problems paying the mortgage, but have questions as to what we will be responsible for if we forclose. Do we have to pay back either loan? Property taxes? What are we liable for and what is the best thing to do? Our loan adjusts in a few years and who knows if our house will be able to refi then and who knows what the interest rates will be. Right now we are throwing money out the window and there is no end in sight because we can't refinance with negative equity. Help!
My rental property in nevada went into foreclosure and was auctioned off. I had a first and a second loan. I was just informed that the bank sold the second loan and now that bank sent the loan to a collection agency. My question is, isn't the loan wiped out when the house went into foreclosure. The first and the second belonged to the same bank. Help.
Thank you,
Carlos
hi,
Im shreya working in firm n i have 1 query, my sis took education loan back 6 years ago for 10Lac and ma parents for soem reason forgot to pay premium after 1 years consquently. Now when i met with an bank manager to ask how much i hve to start paying if i want to pay the loan he said it is now 20lac. I m so surprise n i dont hve tht much money with me now.
So ma questions is i kept my house whihc cost almost for 40 Lac, can i sell my house n give bck money to bank. As a matter of fact i do know my papers r there with bank, bt plz advise can i do this .
Please help me with correct answer as im in mess..........
Thanks
Hello Sean,
I live in the State of Florida, my house was sold back to the bank on July 28th,2009. :Prior to my house being sold back to the bank, I was approve for a loan modification which I had a deadline of August 9, 2009 to accept the offer. I was told by the bank which was Chase that, all foreclosure proceedings were going to be stoped since we got approved for a program. Now, on July 28,th its like 10 days before the deadline of the offer expires, they sell the house to FANIMAE for $100.00. I was told the sale was going to be reverse, nothing happened instead I got the certificate of title that shows that we are no longer the owners of the house. NOw, is that ligal what the bank did? What can I do? will the come after me for the money? will they contact my job? I was not one of the people who walked away from the house, I tried to save it, got approved and they still sold the house. I have all the paper work has proof. please let me know what you think. thank you
WE INHERITED A HOUSE BACK IN 2000 WE TOOK A 1ST MORGAGE FOR 75K, WE DID SOME IMPROVEMENTS AND IN 2007 TOOK A 2ND MTG. FOR 14K. BOTH WERE DRIVE-BY APPRASIALS AND THE 2ND WAS ONLY A STATED VALUE LOAN. NOW WE CAN'T AFFORD THE PAYMENTS ON BOTH, AND THE TAXES ARE BEHIND. WE WANT TO WALK AWAY FROM THE HOUSE, THE 1ST MTG SAID WE HAD IT DISCHARGED IN A BANKRUPTSY WE HAD IN 2004 AND THAT WE ARE NOT LEGALLY RESPONSIBLE TO PAY BECAUSE OF THE BANKRUPTSY, THEY ONLY HOLD THE LIEN ON THE HOUSE. THE 2ND MTG ALSO HAS A LIEN. WE HAD IT APPRAISED ABOUT 1 YEAR AGO, AND IT WAS WORTH 65K AT THE MOST. WHAT WILL WE BE RESPONSIBLE FOR? OR WHO WILL COME AFTER US FOR THE MONEY. WE ARE IN PA. AND STILL OWE 67 ON FIRST MTG. AND 14K ON 2ND.
Hey Sean,
Thanks for answering us all! I have a question. I received a notice my property was up for auction in June. I haven't heard ANYTHING from either lender (1st and 2nd were used to purchase house). HOA keeps bothering me. Should I keep waiting? My tax person says I am going to need a form from them. I am hoping not to pay any penalties since I am in CA. Any advise on what to do would be appreciated.
Hi Sean.
I'm in CA and just found out that my second mort. is foreclosing on the first which are both with the same bank. If I'm correct, the second is opting for a non-judicial foreclosure and using their one action rule to pay off the first, which was a HELOC, and I will only receive a 1099 for the amount forgiven?
Thanks
I actually meant that the 2nd was a HELOC
I'm seeing a lot of questions from many states, but nothing about Minnesota. If the bank forecloses on my home and cannot sell it for the value of the current mortgage, will I be responsible for paying them the balance?
Thanks!
Hello, I was told that my house was going to be sold October 6th. I have no idea if it has been. What are the ways to find out? I was wondering if there is anyway that I can reverse the sell. I have a tenant in there right now and even though she signed a 2 year lease, Bank of America is not working with me because I owed 12K to reinstate the loan. I told them that I was going back to school and they did not exempt that as a hardship. I got scerwed by my property manager telling me that because my house was on the market, it wouldn't go into foreclosure. Then I get a letter in the mail telling me there was a sell date in two weeks. Do you know of any agencies that I may qualify for? My house is in Houston, TX and I am in grad school in Berkeley, CA. I am 28 and I wanted to check out any options before I finally gave up. Thanks
I had my home foreclosed on in Nevada and it went to auction on 1/26/09. It is now 10/24/09 and the bank never came after me for the money they were out. I only had one loan and did not need mortgage insurance. I was now served paper work and am being sued by the "banks" mortgage insurance company in the amount of $95,000 dollars.
I was wondering if i am liable for this amount (I was told it was something called subrogation).
I do not have anyway of paying this and was hoping to get some input into this, and if this is something that is happening more frequently.
"I had some hail damage to my home in June 2008. The check was made out to me and the mortgage co. The mortgage co wouldnt sign the check until I had the work done. I didnt have the money to get the replaced. In the meantime, due to a heart condition, I was not able to work and just got approved for social security disability. My house went back to the back oct 7 2009 and I vacated the home Oct 15, 2009. State Farm wants a letter from the mortgage that the home was taken back as is, but the mortgage co will no longer talk to me. I sent State Farm a copy of my three day to quit notice and the default notice where the home was being sold as is. I am trying to get the check made out to me but without anything from the mortgage co State Farm will not do it. Any advise?
I am in dire straits. My landlady just showed me a certified letter from the bank indicating that the house I am now renting a room in is going to be auction off on November 30, 2009 at 10:30am. I was not told when I rented the room in Washington DC NW area that the property was in foreclosure. Was I deceived by the landlord? How much time do I have to remain in the house after the auction?
It is getting cold, I have no place else to go, what are my legal rights?
Is it illegal to rent an apartment or a room in the District of Columbia if the landlord had full knowledge that the property was in foreclosure? What is the law? Where can I go to get him please. Thank you
My home was sold in an auction to the beneficiary yesterday for 459k, they were asking for 613k what happens to me and my kids? We are in Cali and i don't have a job or anywhere to go...what will the beneficiary do now...how much time do i have?
my brother just lost his house in Indiana and it was set to be auctioned here shortly i herd that he could buy it back for the purchased price from they bank because the had to hold it for 90 days before closing to give time to the person who lost it to reclaim the property. Is this true?
Post new comment