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Can you stop a foreclosure proceeding

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Money Talk > Real Estate

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nemoryer
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Can you stop a foreclosure proceeding  Reply with quote  

My niece is very evasive about her affairs and I surmise it's due to guilt or shame. We are very close. At the expense of being branded a nosey aunt (but caring and loving), please help me understand the process involved with foreclosures.

So far the facts as I know them are:

1) She lives in CA and is joint-tenant with a friend on a house.
2) In 2010, she filed for bankruptcy and is paying a Trustee for 5 years.
3) The house is under water as is most of the houses that we know.
4) In December 2011, they decided to stop making mortgage payments.
5) Around March 2012, they get letter from WFB stating that foreclosure proceedings will be forthcoming.
6) Around May 2012, she boasted to me that she (for the first time in her life) has a substantial amount in her checking account accmulated from not having to pay the mortgage, and feels very happy about that.
7) In June 2012, she says that there is this woman who came highly recommended by her bankruptcy attorney, who is mediating with WFB to re-modify the loan and that all is in process.

Bottom line, they'd like to stay in the house and not have to move.

My question: Can she really get away with it, not having to pay all those months of no mortgage payments? Not that I really care for the banks, but is that justifiable? Also, she did not pay her property taxes in the spring of 2012, how is that dealt with?

If only for my own knowledge and information would I like to know answers to some or all of my questions.

Thank you.
Post Sat Jun 23, 2012 5:01 pm
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oldguy
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quote:
has a substantial amount in her checking account accmulated from not having to pay the mortgage


I would guess that her version of 'substantial amount' is way different form ours. Her half of the payment for 7 months might be $8000 or $10,000, not enough re-establish herself as a home owner, rememeber, she still has 3 more yrs of bk.

But she may be OK on the tax default, WF has probably been paying the taxes on the house, they are now the owners of the hosue and they don't want to lose the house at a tax auction.

Where is the joint-tenant in all of this - also bk? Moving out? Staying?


quote:
The house is under water as is most of the houses that we know.


lol- What kind of people do you hang with? I know lots of people, I don't know any that are under water in their houses - yes, lots of people in CA over-bought but that isn't universally true across the country.

quote:
Can she really get away with it, not having to pay all those months of no mortgage payments? Not that I really care for the banks, but is that justifiable?


She won't actually "get away" with it, the lender adds the defaulted amount to the loan balance and resets the loan - WF may waive some of the late penalties but she will be billed for the actual amount that she borrowed, plus the interest that she owes the bank for those months.

BTW, banks are not the enemy - they hold the savings accounts of you and your neighbors and they are required to lend that money and earn intererst on it. So when someone stiffs the bank, they have to charge higher fees to you and your neighbors to cover that loss.
Post Sat Jun 23, 2012 5:40 pm
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littleroc02us
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I have a hard time reading about people who sign promissary notes to a bank who lended her the money in good conscience and then she is now boasting her immorality. This is a sad state of affairs that some of the citizens feel like they should be given everything. The bank will sell the house at an auction and I hope they sue her for the difference and her credit is ruined for 7-10 years. I have no patience for people like this. Rolling Eyes

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Jun 25, 2012 2:39 pm
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