• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

GF is getting foreclosed

T

Titan

Golden Member
Ok so my GF moved in with me last year because she couldn't afford to heat her tiny house. Her life is much better now that she lives in my apartment.

She put it on the market, trouble is she has to ask for enough to cover the rest of the mortgage, and we all know how the housing market did last year. She is in upstate NY. She winterized the house, and it is empty. She does not want it.

This past Feb, she decides the house will not sell and just wants the bank to take it. She talks with them and it sounds reasonable for her to apply for a deed in lieu, this makes sense, bank gets the house, avoids all kinds of costs. She applies, it gets rejected because the bank is stupid and thinks the house can sell.

It is a tiny brick cottage that has less square feet than my 700 square foot 1 bedroom apartment. And she's pretty sure the realtor who sold it to her claimed there was a false last minute bid when she bought it, but you can't prove that, so she overpaid for the house.

So I called and am waiting to hear back from a lawyer friend of mine so we can consult with a lawyer and maybe keep the costs down or negotiate a deed in lieu out of court.
Today she gets notice from the bank that she should not communicate with them and instead with their lawyers, and as part of foreclosure she will have to pay all their legal fees and court costs.

GF looks up on google what court costs typically are and 60k is her answer. (She could be wrong) That's almost what she owes. Now she might have to file for bankruptcy.

She has done everything right as far as I can see it to handle this bad situation. If presented to Judge by a competent lawyer, I would feel that she should have to pay little, if anything.

What can she do?
 
Shoot her with a grain of sand moving at .999c.

Seriously? You think she's done everything right? She bought the house. It doesn't matter if it's lost value. That is her problem.

My advice is to rent the place out until the market recovers. You're going down a bad road here.
 
Where are you that it actually costs money to lose your house 😕


It will trash her credit, but there should really be no other costs associated with it.
 
Originally posted by: Titan
GF looks up on google what court costs typically are and 60k is her answer.
Click to expand...
Your GF is either full of shit or dumb as bricks. Unless you're hiring Johnnie Cochran for your lawyer, it costs nowhere near $60,000.

What can she do?
Click to expand...
Simple. Lock up the house. Mail the keys to the bank. Walk away from it.

Her chances of buying another house anytime soon will be gone, obviously.
 
Originally posted by: radioouman
The bank won't just "take it back" lol
Repo a house?
Click to expand...

There is a such thing as a "Deed in leiu of forclosure". People try and save the 90 and 120 day lates on thier credit. The report will still show that it was a forclosure, so it doesnt really help all that much.
 
It's not the banks responsibility to take it back or foreclose on it. This is the problem with the U.S. today - people don't think before they do sh1t. When decision time comes around again, they don't want to take responsibility for it and hope to get out of it.

Your GF is a total and complete idiot. Tell her to hire a lawyer to figure out her options if she's not going to the "right" thing.
 
Obligatory ATOT response: When you invest, you're taking a risk. The market conditions were favorable at the time and she didn't see the danger, so she took it...and now trying to figure out how to weasel her way out of her responsibilities. F YOU.
 
Originally posted by: hiromizu
Obligatory ATOT response: When you invest, you're taking a risk. The market conditions were favorable at the time and she didn't see the danger, so she took it...and now trying to figure out how to weasel her way out of her responsibilities. F YOU.
Click to expand...

Well..... It's true. lol
 
Try to work out a short sell with the bank? It's where you sell the house at market rate for less than what you owe on it.

You have to find a buyer first of course but it is an alternative to a deed in lieu of foreclosure or straight up foreclosure.
 
What is house worth in current market and what is balance of mortgage remaining.

Kind of sounds like your girl friend is asking bank for a short sale, even if she doesn't realize it.

According to commentators on Carmen Wong Ulrich's "On The Money" show on CNBC, this is basically the same as a bankruptcy in how it will destroy her credit score for years (7?) going forward.

Can she come up with difference between what she can get from sale and outstanding mortgage balance and pay it off that way? (e. g. borrow difference from relatives?)
 
I didn't expect this thread to go this badly. :Q

If she can afford to continue the payments but just feels it's not in her best interest to do so, you can't really blame the bank for not wanting to let her off easy.

During the housing bubble people were able to get mortgages relatively quickly after major negative marks on their credit, like bankruptcy or foreclosure. I wouldn't count on that being true in the future.
 
Originally posted by: Titan

This past Feb, she decides the house will not sell and just wants the bank to take it. She talks with them and it sounds reasonable for her to apply for a deed in lieu, this makes sense, bank gets the house, avoids all kinds of costs. She applies, it gets rejected because the bank is stupid and thinks the house can sell.
Click to expand...

Bank doesn't care if the house can sell or not...that's up to her. They want the money she borrowed repaid. My house is worth $100k less than I paid merely 2 years ago. I am still paying what I knew I would be...doesn't change my deal with the bank.

Originally posted by: Titan
What can she do?
Click to expand...

Pay her fucking bills. Also being in a relationship with someone that obviously cannot support themselves is setting you both up on having it based entirely on codependancy.

 
What is her current mortgage rate, and can she continue to pay for another year or two?

Housing market may be starting to bottom in some parts of country and interest rates are still historically low (though going up), so affordability, at least for those who have jobs, is quite good.

She may have an easier time selling next spring (I'd still put in on the market now, but be realistic about what it is really worth - for example, what would a comp have sold for around 2004?):

http://realestateconsulting.co...tter=Local/local200905

edit: if outstanding mortgage balance is $60,000, how far under water is she? Since she has moved in with you, if she can sell at a fair price, she can rebuild loss with "saved" mortgage payment, property taxes, insurance, etc. Find other ways to cut down discretionary spending and hopefully be able to repay loan from relatives fairly quickly (?)
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top