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Have Any Of You Gone Through Foreclosure?


MorningStar

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A friend of mine just received a letter that her house is going to be foreclosed on and she will have to appear in court on Monday.  It said she should bring a lawyer.  Yes, because people who can't afford their house payment can definitely afford a lawyer.  :rolleyes:

 

It would be good for her to know what to expect at court.  Do any of you have experience with that? 

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A friend of mine just received a letter that her house is going to be foreclosed on and she will have to appear in court on Monday.  It said she should bring a lawyer.  Yes, because people who can't afford their house payment can definitely afford a lawyer.  :rolleyes:

 

It would be good for her to know what to expect at court.  Do any of you have experience with that? 

I don't remember what state you're in ... if it's not too much IRL info (difficult to help otherwise).  :unknw:

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OK, this comes with a huge caveat.  You may have already seen it.  All I did was a ten-second Google search "Legal aid" + Washington.  But ...

 

http://www.washingtonlawhelp.org/issues

 

Then I clicked on "Housing," then on "Foreclosure."

 

http://www.washingtonlawhelp.org/issues/housing/foreclosure-1

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Thanks to both of you!  Ken, I found a few links yesterday, but am wanting to know how major the court appearance is.  Would the person have to take the stand or just stand in front of the judge and make some kind of statement?  Hopefully she will quickly be able to find a pro bono lawyer to help her through it.

 

Eray, what does it mean to negotiate a deed? 

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Well, if they are really being foreclosed upon, they should have been receiving notices for some time now, and replying with defenses.   If this is truly their first notice, then before monday they might want to file paperwork saying it was the first notice they have (and if the entity foreclosing is not the one who holds their deed) that  they've never heard of this outfit and the company t hat holds their mortgage to the best of their knowledge is ______________.   Most legal aid societies these days to help people within income guidelines in foreclosure cases, so they should ask if there is someone who could go with them.   And if they want a temporary stop then they could file bankruptcy (which would stop for a bit).    If they have been paying, then they should also say that in the paperwork and take their cancelled checks to court (along with original mortgage documents), and if their mortgagee has been transferred the paperwork for transfers they know about.

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Thanks to both of you!  Ken, I found a few links yesterday, but am wanting to know how major the court appearance is.  Would the person have to take the stand or just stand in front of the judge and make some kind of statement?  Hopefully she will quickly be able to find a pro bono lawyer to help her through it.

 

Eray, what does it mean to negotiate a deed? 

 

A deed in lieu foreclosure is an agreement with the mortgage company to accept the property as a total payout of the mortgage.  They will sign over the deed to the property, to the mortgage company, in return the mortgage company agrees to accept that as total payment for what is due and won't hold them liable for any amount short when the property is sold.  Then there is no foreclosure expenses.

Edited by ERayR
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I have a question. What is the tax obligation on a foreclosure. My son had to short sale his house and ended up with a huge tax bill on the amount over the short sale or something like that. We still haven't figured out that one.

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I have a question. What is the tax obligation on a foreclosure. My son had to short sale his house and ended up with a huge tax bill on the amount over the short sale or something like that. We still haven't figured out that one.

 

If debt is forgiven then it is income in the amount of the forgiven debt.  Deed in lieu of foreclosure, if you can get the mortgage company to agree to it, eliminates that pitfall.

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Well, if they are really being foreclosed upon, they should have been receiving notices for some time now, and replying with defenses.   If this is truly their first notice, then before monday they might want to file paperwork saying it was the first notice they have (and if the entity foreclosing is not the one who holds their deed) that  they've never heard of this outfit and the company t hat holds their mortgage to the best of their knowledge is ______________.   Most legal aid societies these days to help people within income guidelines in foreclosure cases, so they should ask if there is someone who could go with them.   And if they want a temporary stop then they could file bankruptcy (which would stop for a bit).    If they have been paying, then they should also say that in the paperwork and take their cancelled checks to court (along with original mortgage documents), and if their mortgagee has been transferred the paperwork for transfers they know about.

She received a letter a long time ago warning that it could happen and has been unemployed/underemployed since 2007.  She was on unemployment, then used up her 401K, and once she was given a job for $10 an hour, she kept paying what she could.  For a long time, she hasn't been paying her property tax or condo dues, so there are liens on her place.  A letter said to pay her $20,000 and everything should be fine, but of course she doesn't have that kind of money.  She has been hiding and avoiding it for a long time and was pretty sure the knocks on her door were someone trying to serve her, but she never answers the door for anyone unless she knows they are coming.  The bishop had suggested she sell the place, but she had taken out a second mortgage when she had to take a 3 month medical leave, then immediately was laid off when she came back.  So with that and the liens, she would end up owing.  She is extremely depressed and her strategy has been avoiding it and pretending it's not happening.  Then she finally got another letter in the mail saying the foreclosure is starting and she is to appear in court on Monday.  She's 61 years old, has no family nearby, no children, and is quite set in her ways.  I had suggested she get some roommates to help her pay the mortgage, but she said, "I'm past that.  I can't live with people."  I understand that would be hard, but not as bad as being homeless!  And talk about living with people you don't want to live with ......

 

She thinks it will take a year for the foreclosure to happen, so I'm hoping she will find a counselor to help her know what to do.  Her best bet now, I think, is to stop making payments and save towards 1st, last, and deposit for a rental.  She will be lucky if a co-signer isn't required for her to even get a lease.  She still has hope that this last job she just interviewed for will save her and that she will be able to catch up, but that's doubtful.  Reality is, she will probably never own a home again and will be stuck in this crappy situation until she can collect Social Security.  That's a long wait.  And for a diabetic with no health insurance for the past 7 years, chances are she won't live that long. 

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That may be in this case like saying the hamburger is the least expensive of the options of meat when the person has barely enough money for a crust of bread. Just because it is least expensive doesnt mean she can afford it.

Besides the pro bono guys, she may want to talk to the bishop to see is anyone in the stake does this kind of work for members pro bono as well.

Edited by calmoriah
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