How to get super duped while your home is in foreclosure
You saw that bandit sign at the intersection that says STOP FORECLOSURE, call Mr. Miracle at 555 BIG SCAM. Here you have a chance. Mr. Miracle, who looks a lot like PT Barnum and Elmer Gantry rolled into one, suggests that you hand over your home subject to the mortgage. What does that mean? In Florida, it means you have given your home to Mr. Miracle. He is the owner. It’s from him. You need to move or pay your rent. He owns the house but you owe the mortgage. You owe the mortgage. You signed a promissory note when you got the mortgage. You personally promised to return the money. If you don’t, the bank will sue you for a deficiency judgment. What is a judgment for deficiency? It’s when the bank sues you and gets a personal judgment against you for the difference between how much you owe and what the house was sold for at a public foreclosure auction on the courthouse steps that Mr. Miracle didn’t catch up. and he didn’t make the payments like he did. he said he would.
Oh good. You can always file for bankruptcy unless you have already done so and the bank waits until you have done so to sue you. Don’t those trials expire? Yes they do in twenty years. In Florida, the creditor can take your assets. take your bank account, garnish your salary, aggravate you for a long time
Wouldn’t it make more sense to get a little more information before giving up your house to Mr. Miracle?
Here’s another idea. Let’s do nothing! Yes, do nothing. Just sit back and wait for the foreclosure auction. Anyway, it is not your fault that you find yourself in this solution. It’s the bank’s fault. It is the fault of the real estate agent. It’s the government’s fault. Doing nothing is a little better than giving up your house to Mr. Miracle. If you do nothing, in Florida, it will take about six Ten months for the foreclosure process to go through. Your home will be sold on the courthouse steps. It will be sold for pennies on the dollar or the bank will buy it. You will likely be sued for a deficiency judgment. Your problems are just beginning.
Write it to Mr. Milagro. That is not a good plan. Do nothing. That is not much better. What can you do?
Here’s a novel idea. Catch up on late payments and keep making payments. I am amazed at how many people are being repossessed and they are not working. Go to work. Earn some money. Do something below your dignity. Sell something. Sell everything you have. Sell your car. Sell your jet ski. Sell your furniture. Sell your jewelry. Sell your motorcycle. If any of this has payments, sell it first. Gather the money and make the payments. Unless you committed fraud in obtaining this mortgage, you could pay for this house when you bought it. Make payments. Do not take this lying down. If you committed mortgage fraud to get this loan, that’s an even better reason to make the payments. After a foreclosure, a fraud investigation could really make your life miserable. Google that,
Many people who come to my real estate school are there to learn how to earn money so they can make payments on their house that is being foreclosed. Real estate, insurance, prepaid legal services, Avon, Mary Kay, Pampered Chef, and many other products are sold on commission only. Anyone who wants to make money can learn to make money by selling one of these products. It is easy to get hired because the recruiter cannot know if you are going to work. Almost all products that are sold on commission can only be sold by anyone who works hard. Take advantage of this opportunity and earn some money. Make Your Payments Most of these products, including real estate, can be sold part-time. If you are currently employed but need more money, look for this opportunity. Make your payments.
Call your bank or mortgage company. Talk to them. Ask them what you can do. They may surprise you. I have heard some amazing stories.
Here is a plan that I am sure will work. Sell your house. If you can’t afford it, sell it. What could be simpler than that? Find a buyer. You get a new mortgage, you pay it off. Your problem is solved. What if your house is worth three hundred thousand and you owe four hundred on your mortgage?
Banks are in business to make money. If your home is foreclosed, it will probably be sold at a public auction on the courthouse steps for $ 200,000, or the bank will buy it on the courthouse steps. They will then list it with a real estate agent and he will make a commission. They will also pay the normal costs of closing the transaction. They will also have all the normal home ownership expenses; taxes, HOA owed, insurance, maintenance, etc. They don’t want to do that. However, if it is the most profitable option available to them, they will.
Another option for you is called loss mitigation, in jargon called “short sale.” The way this works is, find a buyer, the best way to do that is by listing with a good real estate agent. The real estate agent finds a buyer at a suitable price. Participate in that decision. Once all the expenses of the sale have been paid, the bank accepts the proceeds of that sale and repays the loan.
Have an attorney represent you and make sure the bank waives your right to a deficiency judgment.
Please understand that you are in a very bad situation. You are going to need a lot of discomfort to get out. Be good to yourself. Be nice to your spouse. Do not sign any documents that you do not understand. Legal advice is cheap compared to what can happen without it. To think. These are important decisions.