Re: Foreclosure Questions (TEXAS)

Posted by Keri on May 04, 2005 at 22:11:40:

In Reply to: Re: Foreclosure Questions (TEXAS) posted by Todd on May 02, 2005 at 21:39:30:

: As for trying to sell, our equity after 3 years is not much. My concern is the closing costs that would be involved. Neither or us could afford to pay the closing costs involved and still pay off both mortgages.

: Thanks for the info on the forclosure process.

: A further question. In some of the other posts on this site, there is talk about a "Redemption Period". Does Texas have such a thing. Therotically, how far out could this be stretched before being forceably taken out?
: ******************************************************

: : Ty,

: : In my experience, most real estate agents don't know anything about foreclosure and it's implications. That's not meant as disrespect, just that they don't deal with it on a regular basis. With that said, if foreclosure is inevitable, it's not a bad idea to list the house for sale at it's current market value.

: : Answering the questions:
: : 1. In a non-judicial foreclosure state, like TX, there shouldn't be credit impacts if you aren't a signatory to the note.

: : 2. Most mortgage companies will begin foreclousre proceedings after the third monthly payment is missed.

: : 3. In TX, the foreclosure process is fairly short, once the lender begins the process, an auction sale is scheduled fairly quickly. Sales are only held on the first Tuesday of every month, as I recall, so there's probabaly a two month window from the beginning of foreclosure to the sale date. Evictions usully take 30 days or so after a new owner takes title at/ or shortly after the auction.

: : 4. 2nd mortgage, if short at the auction, has the capability to seek a judgment for their wiped from title debt. Last time I looked at TX specifics, judgments weren't really collectable, as wages can't be garnished. It would inhibit the future purchase of property though.

: : 4. Bankruptcy can extend the foreclosure timeline. You probably should seek legal counsel to determine the benefits/drawbacks of this option.

: : : : My wife has decided she wants to divorce/separate. Without our joint income, neither one can afford to pay our mortgage. We have had the house for 3 years. The mortgage was signed by her and we both signed the title. She took out 2 mortgages at the time of signing. The primary covered 80% and the 2nd covered the remaining 20%. Neither one of us wants to file bankruptcy. We are not trying to escape from our debts, just that we can't afford the house.

: : : : Here are my questions:
: : : : 1) When the house goes into forclousre, will it affect my credit since I am not on the mortgage.

: : : : 2) How long does it usually take before the mortgage company starts the forclosure process?

: : : : 3) How long does it take to complete the forclosure? How long can we/she stay in the house before forceably required to move out?

: : : : 4) Obvisouly, the sale of the home shall pay off the primary loan, but the secondary will most likely be short. What legal options does the 2nd mortgage company have?

: : : : 5) Would bankruptcy be the better idea?

: : :
: : : Make an attempt to sale the house first before thinking about foreclosure. Get a real-estate agent.

I'm in Houston. I'm a Mortgage Loan Mediator & I have helped over 25 families save their home from the foreclosure auction. Most of the families I have helped are coming out of bankruptcy. Whatever you do, avoid bankruptcy if you can. It seems to cause people to get even farther behind. If your house goes to auction, most likely the 2nd lienholder will be left empty handed, your credit will be damaged, and you will receive a 1099 for any shortages you owe after the home is sold. Depending on who your mortgage company is & your current interest rate, you have a good chance of working out something with them, maybe lowering your payments and saving your home. If you need additional advice, please email me at: kmmkeri@aol.com
Best Wishes

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Comments:
: : As for trying to sell, our equity after 3 years is not much. My concern is the closing costs that would be involved. Neither or us could afford to pay the closing costs involved and still pay off both mortgages.

: : Thanks for the info on the forclosure process.

: : A further question. In some of the other posts on this site, there is talk about a "Redemption Period". Does Texas have such a thing. Therotically, how far out could this be stretched before being forceably taken out?
: : ******************************************************

: : : Ty,

: : : In my experience, most real estate agents don't know anything about foreclosure and it's implications.  That's not meant as disrespect, just that they don't deal with it on a regular basis.  With that said, if foreclosure is inevitable, it's not a bad idea to list the house for sale at it's current market value.

: : : Answering the questions:
: : : 1. In a non-judicial foreclosure state, like TX, there shouldn't be credit impacts if you aren't a signatory to the note.

: : : 2. Most mortgage companies will begin foreclousre proceedings after the third monthly payment is missed.

: : : 3. In TX, the foreclosure process is fairly short, once the lender begins the process, an auction sale is scheduled fairly quickly.  Sales are only held on the first Tuesday of every month, as I recall, so there's probabaly a two month window from the beginning of foreclosure to the sale date.  Evictions usully take 30 days or so after a new owner takes title at/ or shortly after the auction.

: : : 4. 2nd mortgage, if short at the auction, has the capability to seek a judgment for their wiped from title debt.  Last time I looked at TX specifics, judgments weren't really collectable, as wages can't be garnished.  It would inhibit the future purchase of property though.

: : : 4. Bankruptcy can extend the foreclosure timeline.  You probably should seek legal counsel to determine the benefits/drawbacks of this option.

: : : : : My wife has decided she wants to divorce/separate. Without our joint income, neither one can afford to pay our mortgage. We have had the house for 3 years. The mortgage was signed by her and we both signed the title. She took out 2 mortgages at the time of signing. The primary covered 80% and the 2nd covered the remaining 20%. Neither one of us wants to file bankruptcy. We are not trying to escape from our debts, just that we can't afford the house.

: : : : : Here are my questions:
: : : : : 1) When the house goes into forclousre, will it affect my credit since I am not on the mortgage.

: : : : : 2) How long does it usually take before the mortgage company starts the forclosure process?

: : : : : 3) How long does it take to complete the forclosure?  How long can we/she stay in the house before forceably required to move out?

: : : : : 4) Obvisouly, the sale of the home shall pay off the primary loan, but the secondary will most likely be short. What legal options does the 2nd mortgage company have?

: : : : : 5) Would bankruptcy be the better idea?

: : : : 
: : : : Make an attempt to sale the house first before thinking about foreclosure.  Get a real-estate agent.

: I'm in Houston. I'm a Mortgage Loan Mediator & I have helped over 25 families save their home from the foreclosure auction.  Most of the families I have helped are coming out of bankruptcy.  Whatever you do, avoid bankruptcy if you can. It seems to cause people to get even farther behind. If your house goes to auction, most likely the 2nd lienholder will be left empty handed, your credit will be damaged, and you will receive a 1099 for any shortages you owe after the home is sold. Depending on who your mortgage company is & your current interest rate, you have a good chance of working out something with them, maybe lowering your payments and saving your home. If you need additional advice, please email me at: kmmkeri@aol.com
: Best Wishes


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