Notice of Trustee's sale

[memama]

Well the people taking care of our house were delivered a notice of Trustee's sale yesterday. The sale will happen December 18th. My attorney said that the notice had to be published in the paper for 4 weeks and then after that, there is 120 days until the sale. I thought I would see the notice published first but I guess I was wrong!

I have really weird, mixed feelings about this. Part of me is really sad for this to happen, but part of me is relieved. And part of my feels *really* bad for the people living there; they'll have to find a new place before Christmas, which really is a bummer

So after the sale, what happens next? I mean, what if it doesn't sell? Or is this an opportunity for the bank to get it back? I'm lost on how all of this works.

[tobee43]

it's really going to depend.

unfortunately the laws governing deficiency judgments vary from state to state. in Idaho, lenders are able to get deficiency judgments against borrowers. which means if the house sells for less than what you owe they can go after you for the remaining balance IF............that is IF you did not list the house on your bankruptcy.

after the sale the deed will transfer into the new owners home whether it's a "person" or the bank. that will remove your names from the deed which is an excellent thing, although as i stated if you listed them on your petition and deficiency amount the bank will not be able to collect on. also, you may be issued a 1099 on the amount, if any, however, since the sale will take place prior to jan 2013, you will covered under the Debt Relief Act of 2007 which forgives any claims for any taxes on what the bank may claim as a loss to them.

[memama]

Tobee,
The house was *the* reason we filed for bankruptcy, so it was most definitely included! I guess I just expected it to take a bit longer. I'm more worried for the people living in the house currently; that means they have to move right before Christmas and that just stinks

What if the house doesn't sell at the sale? I mean, can the bank "pass" on it at that point, or just postpone the sale?

[tobee43]

then it's good that you will not longer be tied to the bank or the house after the sale then.


no, they will just take the house and send the tenants a request to vacate the premises. they may even be able to get "cash" for keys, depending on the bank, as they want the tenants out as soon as possible after the sale. or, now, many times the banks, (or so i have seen it happen here in florida) want the people to stay and have them sign leases for their rentals. it's hard to say what exactly your bank will or will not do.

as far as the tenants, i'm certain you feel terrible, but six months is ample time for them to relocate. i'm sure they knew this was going to happen (or at least i hope then did???) at some point of their tenancy.

the bank will not postpone the sale.

[Pjmax]

Memama, I assume you've told 'the people in the house' about the sale? I mean they have over 4 mos. to find a new place. They don't have to be there until just before Christmas.

[memama]

Yes, the people knew that we were going in to foreclosure before they took occupancy. Actually, they knew *well* before they took occupancy so they were indeed expecting this. I just hate for them to have to leave, especially right before Christmas. I'll let them know that they will likely be contacted to vacate after the sale date, but I'd hate for them to have five days to find a new place to live. Although by then (since they are not paying rent) they should have plenty of money saved up! At least I hope so!

They are close, personal friends of ours...that's why I think I have additional concern over the situation

[tobee43]

Yes, the people knew that we were going in to foreclosure before they took occupancy. Actually, they knew *well* before they took occupancy so they were indeed expecting this. I just hate for them to have to leave, especially right before Christmas. I'll let them know that they will likely be contacted to vacate after the sale date, but I'd hate for them to have five days to find a new place to live. Although by then (since they are not paying rent) they should have plenty of money saved up! At least I hope so!

They are close, personal friends of ours...that's why I think I have additional concern over the situation

that explains why you are feeling this way. but really, if they have been living there rent free for all this time, and now have almost another 4 more months to save money, they are in fact, luckier than most people i know. actually, if i were in your situation, i would view it as you have really handed these friends thousands of dollars in rent savings over the past months. nothing to feel badly about at all, you have given them a gift. i hope they used it wisely. many never have the opportunity you gave them, to live rent free and save money, so you really can't take responsibility for whether they used this opportunity for the better or not.

now time to worry about your future and maybe move on?

[memama]

I don't think I'll be able to breathe a sigh of relief until the house is good and done with! But, we're moving on and focusing on our future as best we can right now I'm excited to be done with all of this and fully move on with our lives! I'm equally as excited about the lessons we have learned and to apply that knowledge to our future plans.

[tobee43]

I don't think I'll be able to breathe a sigh of relief until the house is good and done with! But, we're moving on and focusing on our future as best we can right now I'm excited to be done with all of this and fully move on with our lives! I'm equally as excited about the lessons we have learned and to apply that knowledge to our future plans.

i'm sure everything will go perfect and your new start! you now only have GREAT things to look forward to in the future