Talk to me about foreclosure?

[Blue_Ray]

I recently filed for Chpt 7 and that is all completed and done.

Now I own a home mortgage and an separate 2nd mortgage / swimming-pool loan with another company.

Now how does foreclosure work?

I really can't afford both loans and I want to move out of the State I am living at.

So......... as easy as it can be, please share how I do an foreclosure process on both my home mortgage & 2nd loan (secure loan).


Many thanks....

[Tbornetun]

Did you sign a reaff during the Ch. 7 process??

[Blue_Ray]

Did you sign a reaff during the Ch. 7 process??

I can call my attorney to find out. I don't think I did.

Why?

[b_girl]

Sounds like you aren't discharged yet--is that right? If you didn't sign a reaffirmation of the debt (where you promise to pay it back), you can stay in the home until they make you leave (advantage of course is free rent for several months up to a year or so, depending on your state/lender) or you can leave it at any time you choose (just make sure you tell the lender, who will take over the home and start the process once they are allowed by the court to do so). Even if you did sign a reaff, you have a certain amount of time to change your mind..check with your attorney about the time frame in your area.

[Blue_Ray]

Sounds like you aren't discharged yet--is that right? If you didn't sign a reaffirmation of the debt (where you promise to pay it back), you can stay in the home until they make you leave (advantage of course is free rent for several months up to a year or so, depending on your state/lender) or you can leave it at any time you choose (just make sure you tell the lender, who will take over the home and start the process once they are allowed by the court to do so). Even if you did sign a reaff, you have a certain amount of time to change your mind..check with your attorney about the time frame in your area.

Oh yea--- I been discharged from chpt7, didn't have to pay anything back.

[b_girl]

Well, if you're discharged and you signed a re-aff, you're probably locked into it...I say probably, because you still have 60 days to change your mind, even after discharge (this language was in our re-affirmation agreement). You definitely need to check with your attorney and see if you did sign one and whether you are out of that 60 day timeframe.

If you didn't, you are free to walk away.

[Blue_Ray]

Well, if you're discharged and you signed a re-aff, you're probably locked into it...I say probably, because you still have 60 days to change your mind, even after discharge (this language was in our re-affirmation agreement). You definitely need to check with your attorney and see if you did sign one and whether you are out of that 60 day timeframe.

If you didn't, you are free to walk away.

Thank you, I will contact my attorney.

Also if I didn't sign an re-affirmation agreement, what is the process to get a foreclosure in process?

* Do I just stop paying on the two mortgages and save my little money I have and wait till the kick me out?

How about items in our house, can they take that away from us??

Thanks

[Tbornetun]

Yes, just save your money and wait to be kicked out. As for your "stuff", they can't touch it.

[Voice of Reason]

With the backlog of foreclosures in the country. You maybe to remain in the house for over a year before the Sheriff comes to toss you out.

Save the mortgage money for another place to stay. BTW, after your discharge usually your credit score goes up. However, occurring new delinquencies after your discharge will kill your FICO with a foreclosure. Just food for thought. Life goes on.

[Blue_Ray]

Hey all.

Here's what I found out from my BK attorney:

He said I did sign a re-aff ONLY on my 2nd mortgage (pool).

He recommend I try doing a Short Sale. He kind of told me the process of it, which in reality makes sense. Do any of you know if I do a short sale, is the punishment on credit as bad as forclousure on it?

Many thanks- Ray

[All Cash]

Hey all.

Here's what I found out from my BK attorney:

He said I did sign a re-aff ONLY on my 2nd mortgage (pool).

He recommend I try doing a Short Sale. He kind of told me the process of it, which in reality makes sense. Do any of you know if I do a short sale, is the punishment on credit as bad as forclousure on it?

Many thanks- Ray

How is the Seller's Credit Affected?

According to David Steep, division manager at Vitek Mortgage, sellers will take as big a hit on their credit report by going through foreclosure as giving the lender a deed-in-lieu of foreclosure. Steep says the points lost on a FICO score are as follows:

* Foreclosure or Deed-in-Lieu of Foreclosure
Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380.

* Short Sale
The effect of a short sale on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status, Steep says, which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420.

Catherine Coy, a mortgage broker in southern California, agrees. "The effect on a consumer's credit report -- foreclosure vs. short sale -- is the difference between being hit by a train or a bus," says Coy.

http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htm

[Blue_Ray]

All Cash --- Might as well tie a rope to one of my arms to the BUS and the other arm to the train and let them TUG.

Either way I'll get RIPPED

Oh well, no need to short sale then; Right? Sounds like its just a waste of time.

[TEW]

How is the Seller's Credit Affected?

According to David Steep, division manager at Vitek Mortgage, sellers will take as big a hit on their credit report by going through foreclosure as giving the lender a deed-in-lieu of foreclosure. Steep says the points lost on a FICO score are as follows:

* Foreclosure or Deed-in-Lieu of Foreclosure
Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller's FICO score before foreclosure was 680, it could dip as low as 380.

* Short Sale
The effect of a short sale on a seller's credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status, Steep says, which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420.

Catherine Coy, a mortgage broker in southern California, agrees. "The effect on a consumer's credit report -- foreclosure vs. short sale -- is the difference between being hit by a train or a bus," says Coy.

http://homebuying.about.com/od/4clos...07SScredit.htm

you can not do a Deed-in-Lieu if you hae a secound on the house. If the loan is discharged it does not DING you CR it show IIB

[Help!]

In an effort to expedite getting our house transferred back to the bank after discharge, we asked our lender (who held the first and second mortgage) to do a non-judicial foreclosure. The house has been unoccupied for ten months and we wanted our name off the deed ASAP so we did a deed in lieu.

We had a short sale offer, but in order for the lender to consider it we would have had to enter into a contract of sale the same way any seller would. Having emerged from BK with zero liability for the loans, we decided it would be unwise to enter into any new contracts (i.e., we could be sued as sellers if something was wrong with the house). It's the last unresolved issue related to our BK and we just want to move on.

[Blue_Ray]

Hey - so if I decided to do a Foreclosure, do I need to hire an attorney like we did when we filed for Chpt7?


Thanks again....

Oh.... also since we did sign a reaffr on the 2nd mortgage loan and we default for the Foreclosure on the 1st mortgage loan,,,, what happens on the 2nd mortgage?

Thanks for clearing things up for me.

RAY