Re: Foreclosure questions

Posted by OC Andy on September 10, 2007 at 19:46:10:

In Reply to: Re: Foreclosure questions posted by Jeanette on September 10, 2007 at 13:57:15:

Jeanette:

First I want to say that I am not an attorney and what I say here must not be taken as legal advise.

That said, It will depend on what state the foreclosed home is in. Each state has different laws regarding their foreclosure process and the associated redemption rights (if any) for the homeowner.

Since you're using the term "trustee", I'm assuming that this is in a Non-Judicial foreclosure state.
Some Non-Judicial foreclosure states will allow the defaulting homeowner a limited period of time to remedy the default including all missed payments, plus associated fees charges, attorney's fees, etc. and bring the note current.

Since it has been more than two months since the sale occurred, your options are limited.

In any case, you should immediately contact the attorney who represented you in your Bk filing and advise him/her that the home was sold if they do not know already.

If the home was sold at auction to someone other than the foreclosing lender/trustee and was sold for more than the defaulted loan balance plus fees, penalties, interest, etc., you may be entitled to the residual.
If you were "upside down" on the house (i.e. if the amount you owed was greater than the value of the home) or if the default amount was within a few thousand dollars of the home's market value, you may be swimming upstream to try to recover the home through any post-sale efforts.

I don't want to sound like I'm throwing a wet blanket on your efforts here, but you should check immediately with your attorney on what your best course(s) of action is at this time.

One other thing for you to consider for your housing needs in the future...
If you need the space that a home provides (vs. getting an apartment), consider a Rent-to Own scenario. Many investors in almost every market have homes that they will advertise as RTO or Rent to Own or Lease Option.
This buying arrangement will allow you to rent or lease a home for a certain period of time with an option to buy the home at the end of the rental period.
During this rental period, you can clean up your credit (whatever debt the Bk court has included as part of the Bk) and it will also allow you to find a quality loan officer (look around, there are plenty of them) that can make solid recommendations as to what loan programs you qualify for, how much you qualify for, etc. and will allow you to get back on track and put these unfortunate events behind you.

Keep your chin up though. Everyone goes through difficult times at some point in their lives.
The experience that you gain form this will help you in the future.

Best of Luck

Follow Ups:


Name    : 
E-Mail  : 
Subject : 

Comments:
The "Reply" function is disabled for older messages. Please visit the Foreclosure Discussion Board for current discussions.