Ontopic Foreclosure

yeah, lady i worked with put her gutters up. I could do it. that just seems like a band aid though.


the wife has suggested renting it, but I just think that things are going to continue to go wrong and in the end we're still on the hook for it. I probably have a friend somewhere who would be interested in renting it, but like flop said i'm going to probably lose money every month on that. an option nonetheless i guess.

I'm not opposed to doing some work, there's just SO much. you really have no idea.

thanks for the input.
 
Sorry to hear about the situation Case. I'm no help as I'm not a home owner and don't know the law. However, if you're going to stay (or have to stay) you have enough friends and I'm sure there's tons of little jobs people can help you out doing, why not have some work days for you and anyone who can help and pay them in beer? Just a thought.
 
Not too sure what your loan to value ratio is, but if you owe more than its worth - you could have issues. Since Florida is whats called a recourse state, the bank can go after you for the difference between what they sell your house for and the amount you owe. Meaning if you have $150k note and they sell it for $50k, you owe the difference. Most of the time, they don't go after the defaulter, but it IS possible. Even if they do, you can usually get a lawyer to settle for pennies on the dollar. So its not a huge risk, but its there.

If you end up doing a short sale, before it gets foreclosed on, the contract will usually state that the bank agrees to not go after you for the difference. So when possible, a short sale is the best option. And as mentioned, a short sale doesn't hurt you as much.

The other issue is a tax one. If you have a $150k note, and the bank forecloses or short sells, normally you're on the hook to the government for tax on the difference. So using the above example, $150k note and sold for $50k, you'd owe taxes on the $100k that was forgiven. Right now, there is a federal law called the Mortgage Debt Relief Act (I think), that says the IRS can't go after you for the difference. That act expires at the end of this year. No idea if it will be renewed. You might be able to squeeze in a short sale this year, but there is no way a foreclosure would happen until next year.

There is a good side to a foreclosure taking a long time. If you're diligent about putting the house payment away every month into an account, you could end up with enough cash to buy the house outright on the steps of the court when it goes into foreclosure. It can and does happen. A good lawyer can also help extend foreclosure time.

The best advice, go talk to an attorney that specializes in foreclosures now. Probably more than one. This is a big deal that can have big consequences. Don't do it alone.
 
fly said:
There is a good side to a foreclosure taking a long time. If you're diligent about putting the house payment away every month into an account, you could end up with enough cash to buy the house outright on the steps of the court when it goes into foreclosure. It can and does happen. A good lawyer can also help extend foreclosure time.
Click to expand...
Guess what I'm in the process of doing -.-

There is one caveat with this though. You are usually NOT allowed to participate in the auction if you are the previous owner or if the previous owner was a living relative. You also usually need to put 10% of the total assessed value down in cash at the auction.
 
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