Can Anyone Help On This Foreclosure Topic?
I am new at this. My boyfriends house is going into foreclosure in fact the auction is 2 weeks from today. He has no idea what to expect or if anything can be done? We live in Ohio does anyone have any suggestions or is it too late for anything to be done? If so what happens now? Any help would be appreciated. Thanks.
file for BK
Bankruptcy may stave off foreclosure for a while until the stay is lifted.
I would see if someone on this site were interested in doing a "short sale" on it which could save your boyfriends credit.
Waiting until the last is never a good idea.
bankruptcy is not an option because it was filed a year ago after divorce. Can a short sale save it at this hour? How many days does it take and who do you contact?
Placing an ad for a cash buyer would take too long at this point. I would contact someone in the business, such as a realtor (they all have investors), title companies, attorneys.
Look in the local small newspaper such as a pennysaver and answer one of the ads that say "cash buyer can close in 7 days or less". Do it today!! Don't wait until Monday. Good Luck!
Most states have mechanisms that will allow you to file something like an "intent to cure". That usually entails an automatic delay.
I can't say for sure since specific state laws vary.
Your "intent to cure" declaration must have some defendable plan or basis.
2 weeks is a very short time frame to try to work a permananet fix. However, it might be adequate to craft a tentative fix that will give you a little more time.
I'm sure the real experts will contribute some ideas here very quickly.
Stay tuned.
You can go to BK as many times as you want. The pro BKers out here do it a minimum of 3 times and get the sale delayed more than a year. Plenty of time to exit with cash. Obviously this isn't the only solution. But for staying the process to alloy for better result it seems to be the most cost effective.
What is the payoff-amount from the bank? What is the FMV of the house?
Have you advertised the house?
You can try calling some investors, and find out if they are willing to buy the house at a discount.
This would at least keep the foreclosure from your record.
I honestly think that filing bankruptcy only makes sense if you're very close to a solution, and need just a few more days to close on the house, or get funds to pay the arrears on the loan.
Prolonging the inevitable is not a good idea.
Deal with the problem, so you can get on with your life asap.
[addsig]
Your boyfriend either filed a CH13 or CH7 BK. Which ever one he filed he is eligible for the other. So BK is still an option and can buy you a 30-60 day reprieve. However, you should be careful, the bank will automatically file a motion to "Relieve Automatic Stay" when you file a BK. If you are not careful the bank will be granted their motion unless you take the appropriate steps. You can fight this by having an offer in place to fight the motion to lift automatic stay or if he qualifies for a CH13 BK you could just do that. You will have to justify this to the BK judge and he may let you do it depending on the offer amount.
Another solution you can do would be to contact the bank and ask them for a "Workout". Your boyfriend may qualify depending on many factors. This can buy you some time while you determine if he is actually capable of keeping the home or not. If he is incapable of paying on the home I recommend you put it on the market immediately so that you save your credit and try to work with an investor.
A WORD OF CAUTION: This advice may vary depending on what state you are in and the BK and foreclosure laws pertaining to your particular state.
I may have skimmed the posts, but I did not even see if the house is upside down. If you have equity, you may be able to delay while you attempt to find a traditional buyer with an agent. Assuming that is not the case, you have the option to pay all the back payments and catch up the note. Assuming you have no money then it gets a bit tougher. I think the BK sggestion is the best way to buy time. I always say, if your going down, go with a bang. You can even BK, sell the home and cancel the bk. The important thing is that the BK should stop the forclosure in its tracks. At that point you should decide if your situation calls for a straight take over (sub2) or a short sale, or if you can comply with the court and come out of BK and pay for your home. My advice is to start working this asap, get as far as you can and ask new questions on this site daily. You will find the people to be the most helpful anywhere.
Having never been to Ohio I couldn't say where you live or which of these clubs are near you but I would pick one, make contact with the referenced person and tell them you have a short sale opportunity etc.
Ohio
Real Estate Investors Association of Cincinnati
Contact: Joe Jenkins, Executive Secretary
Telephone: (800) 795-0083 or (513) 681-7342
When: 1st & 3rd Thursdays of every month
6:30pm New Investors Meeting
7:30pm General Group Meeting
Where: Adath Israel Synagogue, Amberley Village
Columbus Real Estate Exchanges (CREE)
Contact: Timothy Benner **Please See My Profile**
Telephone: (614) 890-1543
When: Every Thursday, 8:30am (except Holidays)
Where: MCL Cafeteria
Cleveland Ave. & Rt. 161, Columbus
A.R.E.I.A.
Contact: Dennis Carberry, President
Telephone: (216) 964-8709
When: 2nd Tuesday of every month 7:00pm
Where: Holiday Inn, Rt. 45 & I-90, Austinburg
Greater Dayton Real Estate Investor's Association
Contact: Mark A. Monroe
Telephone: (937) 277-6688
When: 1st & 3rd Wednesday of the month 7:00pm
Where: Ramada Inn South, I-75 @ Dayton Mall Exit, Dayton
Akron/Canton Real Estate Investor's Association
Contact: Tom McCombs
Telephone: (330) 644-2413
When: 2nd Wednesday of the month, 7:00pm
Where: Holiday Inn, I-77 & S. Arlington Rd., Akron
T.A.R.E.I.A.
Contact: Jerry Conley
Telephone: (419) 447-7890
When: 2nd Monday of the month, 7:00pm
Where: Industrial Savings & Loan - Westgate, Tiffin
REIA of Columbus
http://www.reiacolumbus.org
Contact: Wendy
Telephone: (614) 45-5088
When: Monday, 6:00pm
Where: Makoy Center, Hillard
Lake Erie Landlords Association
Contact: Linda Kinder
Telephone: (440) 967-0045
When: 1st Tuesday of each month, 7:00pm
Where: Elyria Holiday Inn., Elyria
SEO-REIA (Southeast Ohio REIA)
Contact: Ed Copp
Telephone: (740) 596-9551 or (740) 596-0048
When: 2nd Thursday of each month, 7:00pm
Where: 107 S. Sugar St., McArthur
REIANO Plus
Contact: Mary Lou Best
Telephone: (216) 651-6655
When: 3rd Wednesday of each month, 6:45pm
Where: Holiday Inn - Independence, Cleveland
Muskingum Apartment Owners Association
Contact: Al Parmer
Telephone: (740) 872-6124
When: 3rd Tuesday of each month (Except December), 7:00pm
Where: Papa Chuck's Restaurant, 375 Muskingum Ave., Zanesville
Stark County Property Owners Association
Contact: Mike Rukavina
Telephone: (330) 488-1916
When: Last Tuesday of the month, 7:00pm
Where: Nazir Grotto, 1717 6th St. S.W., Canton
North Coast REIA
Contact: Gene Melen
Telephone: (330) 468-0802
When: Every Wednesday of the month, 9:00am
Where: Hilton Hotel Restaurant, Independence
Knox Landlords Association
Contact: Steve Kennedy
Telephone: (740) 397-2406
When: 2nd Wednesday of every month, 7:00pm
Where: New Hope Industries (back entrance), Mt. Vernon
Mid Ohio Real Estate Investors Association
Contact: Ben Spofford
Telephone: (330) 656-3488
When: Please call
Where: Summit, Portage, Stark, and Cuyahoga Counties
Scioto Valley REIA
Contact: Gary Beeson
Telephone: (740) 779-2315
When: 3rd Thursday of each month, 7:00pm
Where: Ohio University Chillicothe, Bennett H
As you can see Lemans,
Most of the suggestions center around selling the house rather than saving it.
FIRST THING: There is a REINSTATEMENT FIGURE to bring the loan current. WE ARE ALL ASSUMING THAT HE EXHAUSTED EVERY MEANS of getting that money, right? Family, friends. Sell car, Jewelry, savings bonds. Take a new loan. Credit card cash advance.
Get the idea?
Assuming that has all been tried......
You dont have much time.
Talking to the bank about workouts is possible but they will not negotiate with him. YOU can act like a buyer and discuss forebearance agreements. Discuss his hardships. Proof would help. But he had better come up with some money to make a good faith payment. 1 month or 2 would be good even if he cant come up with all the money to reinstate.
ALSO: YOU have a different last name (dont tell them you are his girlfriend, tell them you are a BUYER) so YOU can negotiate a short sale to pay off the loan at say 70% of the loan. Banks will only negotiate IF HE HAS VERY LOW EQUITY. Problem is banks move very slow. And foreclosure may come before this negotiation is complete.
If short sale negotiation is working quickly, Make sure there is no judgment (deficiency judgment) against him for the remainder of unpaid loan.
IF short sale works YOU have to buy house. That saves it for the both of you.
Or find a CASH buyer. He will Lose the house, but save his credit.
YOU DO NOT HAVE TIME TO LIST WITH A REALTOR.
The earlier suggestion that REALTORS know some investors, is probably true, but if you sign an "Exclusive" agreement with the realtor you will probably regret it.
Make sure any realtor knows the time frame and doesnt do the normal realtor thing and ask you to sign that 6 month agreement.
The earlier suggestion that it is too late to find a cash buyer is ludicrous.
That is the only thing you really have time for.
Last week I put a "Handyman" ad to sell a house and got over 100 phone calls. Think any of them had cash?
Had a full price contract the same day.
Put a "Foreclosure URGENT" ad, but be more creative and more obvious than I am.
IF HE HAS HUGE EQUITY, OFFER AN EQUITY SHARE. (Example: $100k house, $60k loan, they should buy for $80K and boyfriend gets $20K. Good deal for both)
If your negotiation for forebearance doesnt work. And short sale looks like it is too slow BE VERY DECISIVE. And come to grips that he will lose the house.
IF YOUR BOYFRIEND HAS Small Equity then you dont really care about losing the house. It is more important to save his credit. But it is harder to sell with no equity. Try to sell it for the minimum and save his credit.
HUGE EQUITY, you should try to sell the house with equity share, get the loan paid and save his credit.
He will work and save money and be a homeowner again some other day.
I am jumping a little but there are lots of things to say.
And in the long run, maybe nothing at all can actually be done.
Banks move slowly.....and then.....all at once.
Regardless of what happens, try not to let him feel too terrible about this. Millions of people lost their house last year. A 30 year high.
It happens and then when it is over, believe it or not you feel a little better.
How do you think I know that?
Good Luck,
N.