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Need Financial Advice (Foreclosure Imminent)

Discussion in 'The Okie Corral' started by USMCsilver, Jan 24, 2010.

  1. USMCsilver

    USMCsilver Boat Life ©

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    Okay, this is gonna be somewhat drawn out, but I'll be as breif and precise as I can be:

    MIL bought a beach house in N. Myrtle. My wife and I, and my SIL, each gave a small amount to help with a down payment. The MIL is the only one on the loan.

    My SIL had the idea. She said she'd help rent it out, maintain, etc. However, this NEVER HAPPENED, so it made no money. The idea was to have it pay for itself.

    MIL is a cosmotologist. She got a nice sum of money when her mother died, but...it's basically run dry over the last 2 years of paying for this house she "really" couldn't afford in the first place.

    This month is about the last month she was able to pay for it. She can do nothing else.

    Her home is paid for. She has very few assets. She's got a '70 SS Chevelle in near mint condition and a Dodge Ram that are paid for. All of these are in her name.

    Basically, she's gonna stop paying on the beach house because she has no other real choice.

    I told her to quit paying for it a couple months back if she knew it was going to come to this -- but she didn't. I've told her to sell it for many months now. No joy.

    So, there she is.

    My wife wanted me to post this and seek opinions/options. She knows I get all sources of info here, and for the most part, 99% of you guys are more than awesome.

    Thanks for any/all help.

    :dunno:
     
  2. G30SF/F-250

    G30SF/F-250 Pinky Out Platinum Member

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    Have her call Dave Ramsey!
     

  3. USMCsilver

    USMCsilver Boat Life ©

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    Wonderful help. Thanks. :upeyes:
     
  4. G30SF/F-250

    G30SF/F-250 Pinky Out Platinum Member

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    Well then; short sell, what else can she do? It seems like a cut and dry solution. Too much debt; get rid of it and pay the "stupid tax".
     
  5. robin303

    robin303 Helicopter Nut

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    It is a shame you can't rent it out.
     
  6. faawrenchbndr

    faawrenchbndr CLM

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    That Chevelle could be worth $40k+

    Loose a house, wreck her credit, while she has that?
    I know what I'd be doing.
     
  7. Retseh

    Retseh

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    How much is owed on the house, and how much is it currently appraised for.

    Impossible to give any advice without knowing that.
     
  8. paynter2

    paynter2 It ain't over Millennium Member

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    How long ago did she buy the property?

    Search the web for foreclosure without the mortgage document. I think it was a Cleveland case where Deutsche Bank was trying to foreclose on a property and the attorney for the property owner demanded that DB produce the note - they couldn't.

    The mortgage had been bundled with others and resold (CDO). Since the bank couldn't produce proof that they owned the note, the judge threw out the case. Either it was this case or a similar case, the judge gave the home to the owner.

    'Eminent' is the key word - people should not put their head in the sand and expect problems to disappear. I hope this works out.
     
  9. DoubleWide

    DoubleWide

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    What's the loan value vs the market value of the house? Is a short sale based on the loan value possible?

    Sell the Chevelle.
     
  10. IndyGunFreak

    IndyGunFreak

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    Bank will take the property, they will sell it to the lowest bidder, your mom will be responsible for the balance. Her best bet is to get this thing on the market(like yesterday if its not already)... so she can at least control how much it sells for. This house is on the market, right?

    The problem is, you say your mom has no assets, but she has 2 very expensive vehicles and a paid for home.. they will get their money when they come after her.

    What a stupid situation to get into.. just be thankful your name isn't on anything, because she will fall hard on this if she doesn't sell somehow.

    The only other recourse, would be a "Deed in Lieu of Foreclosure"... and thats basically handing the keys back to the bank. Google for info on this, but she just needs to make sure when she does this, that the bank can't come back on her for any differences(no recourse)

    Good luck

    IGF
     
  11. KYJoe

    KYJoe

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    Do not give her anymore money. That was the first mistake. Get her back in her house that is paid for and get this one on the market ASAP.
     
  12. Another Miller

    Another Miller prankster

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    I know the feeling.It would have been better to have sold it a long time ago as the SIL didnt keep her end of the bargain.Water under the bridge now.

    Personally, is there someone that would buy the car or any particuliar reason to hold onto it?

    Id sell the car and put the lot on for sale for just enough to pay off and recover some money if you can and hope someone will buy it to recover some of the money and get rid of the bad debt.


    Otherwise, its going to burn your MIL plenty to let it go.Has anyone tried speaking to the place the loan is from?
     
  13. IndyGunFreak

    IndyGunFreak

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    No... You basically get an offer.. say the house is worth 100k, and has been on the market for a year, and the bank knows you're going under... and you get an offer for 85k. You go to the bank, and offer them the 85k to pay off the mortgage. I dont know how short sales are working right now...I'm guessing the bank would rather get something, rather than have another empty property sitting on their hands.

    The bank can decline a short sale offer, you just have to work through the process... It'll ding your credit.. not as bad as a foreclosure, but it will ding it. Of course the other option, is to get an offer(say its worth 100k again), put it on the market at a smoking deal.(70-75k, so it will move), and sell the chevelle to cover the other 25k. That's just numbers though, since we don't know the actual value of the house.

    IGF
     
  14. IndyGunFreak

    IndyGunFreak

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    I'd rule that out immediately, nobody is gonna pay market value, not in this market(not anyone in their right mind anyways)... You can probably rule out paying off this mortgage w/ the sale, and almost definitely rule out having any money left over.
     
  15. Crazy KD

    Crazy KD

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    Sorry to hear, but it sounds like you have multiple problems. If she knew months ago she wasn't able to pay for it then it should have been put on the market at that point or even earlier.

    It doesn't sound like she is bankrupt because of her other assets. My understanding of the situation is the bank will reposses, sell as quickly as possible, and present her with the difference in what they sell it for and their costs. The issue you have is that whole process will take months and the house is going to deteriorate because of lack of care for it leading to an even lower sales price and therefore a larger bill for her.

    There are options, but it sounds like the decision was already made to simply let the bank reposses. The lady down the street did this...simply packed up and moved leaving a vacant house. The house has gone to crap now and will sell for 10-15% less than what it would have if she would have stayed in it and kept it up. The bank has still not yet taken possession of the property so it is in legal limbo.
     
  16. USMCsilver

    USMCsilver Boat Life ©

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    Thanks so far.

    The house IS NOT on the market.

    Not too sure of loan value vs. market. Over $200k. I'm sure the balance is over that as well...
     
  17. USMCsilver

    USMCsilver Boat Life ©

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    Oh -- this is a condo in a string of condos. i.e. a 2-story complex. There are owners/renters to the left and right.
     
  18. IndyGunFreak

    IndyGunFreak

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    Well, unfortunately w/o concrete numbers, its hard to really give advice.. I know one thing, that thing would be on the market tomorrow morning if it were me. It needs to be appraised, maybe pull some comps and see if any other condos in that complex have sold in the last 5-6mo, and see what they sold for...

    Your mom is in for a very, very long road. Regardless, she needs to shield herself or her paid for house is gonna be bye bye.

    IGF
     
  19. USMCsilver

    USMCsilver Boat Life ©

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    It's the MIL, but yeah, we know, but my wife and I are having a HARD time making her understand.

    I think she should "sell" us what she has for $1 each. Title all to us, and be done with it so she can protect herself.

    But...what do I know???
     
  20. armorplated

    armorplated

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    If she's only owned the house two years I doubt she has any equity. It's a beach house so I would think maybe it would move faster than an inland property. Either way, we're in a recessionary economy and real estate always takes a hit.

    But it sounds like a short sale. I used to sell for Coldwell Banker and we had a short sale department that did nothing else. She should probably contact somebody asap.

    Even if she were to liquidate the collector's car, it's merely going to prolong the inevitable.