A OneCaboodle experienced foreclosure lawyer answers the question, “Why is my forensic audit important?” Visit OneCaboodle.com today.Carlo Desierto ShortSaleTree.com plug on CW6 San Diego Living Show – 12/21/2011
Short Sale Tree is a real property recovery blog that connects distressed homeowners with foreclosure alternative experts to prevent foreclosure. Post your scenario on ShortSaleTree.com and your questions, concerns, and/or issues will be answered by an expert. It’s 100% free to sign-up so share this information to anyone you know who is facing a foreclosure situation.
Duration : 0:6:49
Mortgage fraud Illegal Foreclosures
http://www.trafficgeyser.net/lead/foreclosure-101 Are you a victim of mortgage fraud or an illegal foreclosure? We do the research. FiCan I rent out my home while its in foreclosure?
A OneCaboodle experienced foreclosure lawyer answers the question, “Can I rent out my home while Can You Get Your Equity Back After a Foreclosure?
http://LeahCoss.ca
Hi everyone. How are you? It’s Leah Coss, with The Mortgage Center. I wanted to talk about the foreclosure process. Because I have gotten the question before, where someone says, look it. Something has happened, whether it be they’ve been in a car accident or someone’s died in the family. Or they’ve lost their job or something like that and they’re having to go into foreclosure or they’re starting to miss a lot of mortgage payments.
And what they’re wondering is, well you know, our house is worth x amount, and we’ve got 20 percent equity in there. I mean, if we go into foreclosure, are we going to see any of that equity. How does this work?
Well, there’s no simple answer. But basically, I will let you know this. Banks don’t want to go through foreclosure proceedings if they don’t have to. It costs them money. It costs them time. And there’s no guarantees that they get all of their money back, especially if it’s an uninsured deal.
So, do whatever you can to work with the bank on coming up with some sort of system to get caught up, OK. If that doesn’t work which it might not, OK, and you might have to go into foreclosure. Then when it comes to getting any of your equity out, there is no guarantees. And, in fact, it is very rare that you will see any money from that, unless you have a lot of money in that place and the market is fairly hopping.
The reason being is, you have to understand that when a bank lends you money, they’re not lending it to you on good faith or because they really like you or, you know, they think your hair is really pretty. They’re lending it to you based solely on the property. That is the collateral. OK.
That way if something does happen and you don’t make the payments, they can take the property. Now, if you have a substantial amount of equity in that property and you go into foreclosure, if there’s anything left over once the bank has sold the property. They pay out their, you know, the debt that you had, they pay out the mortgage. If there’s anything left over, then yes, you get it.
However, there’s two things that factor in. One, it costs a lot of money to do foreclosures. There’s legal’s and things like that, that the bank is going to want to have paid for out of whatever the sales price of that property is.
The second thing is, every single day that goes by, the bank is losing money and your debt is going up. Because interest is accruing, right?
So because of that, the bank needs to sell that property like that. And to sell a property overnight, unless it’s a really hopping market, it’s going to be difficult to get top dollar for, OK.
So even though the market value might be 400,000 dollars, the bank might say, well we just need to sell this and take our money, so that we stop losing money and so we can clear our plate of this. And so they might sell it for 350.
Well now what’s happened to your 20 percent equity? Not much, especially once they not only pay out the mortgage and all the interest that was owed or that’s been accrued. But there’s also the legal costs, and all of that unfortunately is coming out of the property sale price.
So, yes, if there’s anything left over after all of that, you will see the equity. But chances are the banks aren’t going to be haggling to try and get top dollar for that property. They need to just sell it and move on.
So, it’s a difficult situation. I feel horrible for any of you who are going through that. If you have any questions about potentially, you know, picking up your socks and trying to work with the bank of getting out of that mortgage.
Or trying to get another lender to swoop in and buy you some time, whether it be a private lender or whatever. If you have enough equity, there are options for you. So give me a call.
If you’ve had a foreclosure and you’re looking to buy a new place, give me a call, once again. We can see what your options are.
And my heart goes out to any of you who are going through that horrible, horrible time. And hopefully you do see something out of it. But if you don’t, just know life goes on and you will be able to get in to another home later on, hopefully, when your situation perks up a little bit.
So, Leah Coss, with The Mortgage Center. If you have any questions, let me know. And hopefully I will be talking to you soon.
Duration : 0:4:25
Recent Comments