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Posted by Keith(CA) on September 20, 2004 at 20:50:18:
In Reply to: Re: Mortgage pymnt/bankcruptcy/foreclosure/HELP posted by Emelita Hawley on September 20, 2004 at 16:23:14:
Sorry about your job situation...not caring about your credit history might work in your favor since you won't feel emotionally like you have something to lose (which would keep you from making a decision).
In the State of Washington, a document called a "Notice of Trustee's Sale" is recorded in the public records no less than 90 days before your home is sold at auction. You will receive a copy of this document and another document called a "Notice of Foreclosure". The Notice of Trustee's Sale document should tell you precisely the date of the scheduled sale. You may sell your house any time before that date (that is, you must get completely through close of escrow). If you need a delay talk to WaMu first, or file for bankruptcy as a last resort (warn any potential purchaser about what you are doing).
The housing market up in Seattle still appears fairly strong, so if you listed your house right away you could probably get a sale before a foreclosure would take place.
Another possibility (although a more complicated one) would be to lease/option your home. Someone pays you an option fee determined by you (could be $3,000 to $9,000 based on your home's future value) and you agree to give that person an exclusive option to buy your house in the future at a price you agree upon today. In the meantime, they become tenants and pay rent (you can choose to credit a small portion of that rent to their purchase price if you want as an enticement).
In this scenario, the option money you get up front will bring your loan current...and hopefully, the rent would cover your mortgage payment with a little extra left over. You tell your buyer about the coming commercialization and that your home stands to be worth $400,000, but that you will give your tenant an option to buy in two years for $350,000 and a 1.5% option fee ($5,250), which you will use to reinstate your loan making up the back payments. Option fees are non-refundable so that's money in your pocket.
There are plenty of books on the topic that would go into much greater detail. Find out how much your house would rent for by comparing with other rental listings for houses near you with a similar size (bed/bath/square footage). If you add 5% or 10% extra to normal rent and that amount is bigger than what you're paying on your mortgage, then I would very seriously consider this an option. The risk is that your tenant will not exercise their option and leave you with a vacant home (making no income while you still have to make payments). Of course, you're also free to get another tenant and collect yet another option fee. But if the commercialization aspect proves true for you, then your tenent/buyer would exercise their option in two years paying you $350,000 (and you pay off your loan out of that), and your buyer turns around and sells the home for $400,000 and makes a profit as well. You win and your tenant buyer wins.
Something to think about, anyway.
Cheers!
Keith
: : #1 - If WaMu was not escrowing your property taxes, your lender is wise to begin doing so after you have missed a few payments. A property tax lien is typically senior to all other liens, including your mortgage. If the county forecloses on your home and sells it, your lender (WaMu) will lose their security...their lien will be wiped off the title and they then stand to lose a lot of money. In order to protect their security interest, WaMu has decided that it will make sure you never lose your home to a property tax foreclosure by forcing you to pay the taxes in monthly payments. The payments are escrowed until the tax bill arrives, and then paid out of that account (you won't be responsible for another lump sum tax payment unless WaMu doesn't escrow enough to cover the full bill).
: : #2 - Forget about rescinding your mortgage. Despite repeated demands that evidence of even one successful rescission be made public, no such evidence has been forthcoming. You will be charged a fee up front whether or not they are successful...so you may as well spend the money in La
getting a job. I love to keep the house but I cannot make ends meet. Kids got part-time job and we used all out credit cards cash to make mortgage payments. We are over the head with loans to all relatives. I think it is time to sell the house before it goes to foreclosure. I do not want to wait for that letters from WAMu telling me about the house is on foreclosures. My concerns now that if I file bankcruptcy, How many months can I sell the house, it is now winter here in WA. I just hope I can stay here up to the next summer then try to find a place to move.
: If I sell the house, will I have limited time. I want to sell the house as commercial as their is money. But if I sell this as a house it is not worth a lot. I want to wait for a good offer.
: I owe 110,000 on the bank and house is worth 350,000 in commercial sell but if it is only house for sell then it is worth only 250.000. I heard that in 2 more years it will be more money like 400 to 500,000 on this street where I live. Street is now commercialize.
: Anyway I already filed chapter 13 last 2002 and 7 last may 2004. My credit history is already a mess and I don't care anymore. I am 52 years old. Thats is why I am also having problem finding a job. Discrimination??? maybe?? race??? maybe. I am a filipina.
: My question: any limited time to sell the house in bankcruptcy 13.
: emelita
: : : Seattle Washington: I barrowed some money to my sister in law and I paid my two months late on my mortgage, then I also paid another 2 months in advance. What I did not know is that the bank(WA. Mutual) pay also my Real Estate Tax last October 2003 and April 2004 which is $1,800, they said I am now on escrow? I do not know what is that. Eventhou I place on the checks the payments is for September and October mortgage, they still place it as payments for my real estate tax. Can they do that? ALSO, they place another installment plan to my mortgage, and advance pre-payment plan for my real Estate Tax, so my mortgage paymnets now is much higher.
: : : Instead of feeling secure for two months, now I am depressing about foreclosure. Now I am two months behind again and I have not heard from the bank. This is the third time I am behind payments in a year, I can only barrowed money to relatives then I paid off the late mortgage payments. As of now, I do not know if they are in process of foreclosure because the second time I am behind payments they sent me a foeclosure letter which says it will be process, I did barrowed money and I pay them. Now I am behind again.
: : : Here are my question:
: : : 1. Can they change my payments even thou I place it on a specific month? Like payments for september 2004 and october 2004.
: : : 2. This recision, can I do that? I refinance my house in 1998.
: : : 3. I been thinking of selling the house, and file bankcruptcy against the house if foreclosure letter comes. Did the bank will tell me how long it will be in the market? like one year or 6 months, I must sell it or they will foreclose.
: : : Need all advice and great HELP.
: : : Emelita
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