# foreclosing....



## NotSoSureYet (Nov 10, 2011)

Well, it looks like our only option now is to let the bank take our house. We tried to refi, but we are so underwater that the banks won't loan on it (our credit wasn't a problem at all). So we qualified for the HARP program, but it just isn't enough for us to stick in it. I know this sucks, but I am keeping a positive outlook on it. My stbxh is having a rougher time with it. I guess I've had it in my sights a bit longer than he has. We always talked about it, but he didn't take it seriously - kinda like how I'd leave if he didn't change his priorities. Well, I've been gone for about 8+ months now and he decided 2 weeks ago that he needs to change for the better of himself and for us. 
Sorry - I just had to vent to someone and I know everyone on TAM has situations that we all can relate to!


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## blueskies30 (Jan 27, 2010)

Sorry to hear about your foreclosure. We are foreclosing too. It has been a struggle for us for many years. My husband and I were seperated with the intent to divorce at the time of my decision to let the house foreclose. We were also going through bankrupcy so I didn't want in worse case situation for bankrupcy to be finalized and then him to lose the house and then it would be stuck on my credit for what the loan will be short after the sale. 

I've been afraid of foreclosure for so long that I have accepted that we will be moving. My husband is viewing the foreclosure as a kick in the balls on his pride. He wants to blame me because he says we could afford it. Yet I was the one worrying about the house payment for years, paying the payment each month out of cash from a home business that I was doing. We have refinanced the house 2-3 times, which increases the loan each time of course. Then the market crashed and we lost over 10K value on our home. We have owned this house since 2004. Since then we have learned that we never should have bought the house because of its huge problems. This house has also kept us from moving. We are stuck in a state and a city which is going down fast. THis city tries to tax everything, they even for a while taxed the rain. There is no work in our city for my husband so he has to travel 90 minutes 1 way to work for the last 3 years. 

So for me lettign the house go and including it in the bankrupcy so we won't be sued by the bank is like freedom again. We have never rented, but renting now sounds appealing. With rent if you have a job change where you have to move, you can legally break your lease. If something breaks the landlord must pay for it and fix it, so no more expense of home improvements or the time to do them. No home loan making your debt to income ratio larger.


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## blueskies30 (Jan 27, 2010)

I must add that we are now living together and divorce process has been stopped. Our house is also a place of triggers I have noticed. Both of us have bad memories associated with the house.


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## NotSoSureYet (Nov 10, 2011)

thanks blueskies. It's nice to hear that in all the rough, there is a bit of calm. I'm just afraid that I'm not going to want to be around my H once the house is gone. I have a tough enough time being around now. Ugh. Such a roller coaster!!


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## blueskies30 (Jan 27, 2010)

We have roller coaster of emotions too here. My H is really not happy about losing the house. It hurts his pride and he won't put the blame on himself. When ever he talks about losing the house it is my fault because he could have afforded to pay the house. He does not understand that when we can pay the house now, that the loan is still so upsidedown that we could never sell it. I'd rather rent than have the huge loan on our credit. My husband and I do not fight about this even though he is upset, I refuse to fight anymore. I simply tell him I understand how he feels about the loss. I'm sure we will talk more about it in our counseling sessions. We are just now starting marriage counseling after hes moved back into the family home, first session is early next week.


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## GreenEyes (Jan 27, 2011)

Have you considered Bankruptcy to keep the house???? Or is that not an option?


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## FourtyPlus (Dec 18, 2011)

I hope you guys are putting the money you don't spend on paying your mortgage aside, or at least a portion of it. Our lender filed for foreclosure in 2009 but hasn't moved the case to the point were they are getting ready to take possession. We filed for bankruptcy about 2 years ago, our lender can't sue for deficiency once they take the home. We still live in the home and have been putting money aside that we would have spent on paying the mortgage. We are about to make an offer on a smaller, more modest home (also a foreclosure). We will own it free and clear. We will never live beyond our means ever again. Happiness isn't in cathedral ceilings, imported italian marble counters and 6000 sf of living space with crown molding throughout.


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## 827Aug (Apr 27, 2008)

Unfortunately you aren't alone. Luckily I have more equity in the house than the bank does. I will be going to mediation next month. The bank may be willing to re-negotiate. However, since my estranged spouse didn't make half of his support payments, I still may not have enough money for payments.

You really need to consider bankruptcy. It may be more beneficial to file bankruptcy where your credit score is concerned. In addition, it may force the bank to work with you. I know that sounds strange, but that's basically what I got out of two bankruptcy attorneys--if you can file under Chapter 11 or 13.


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## sirdano (Dec 30, 2011)

Always do a short sale before fourclosure.


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## gonefishin (Oct 7, 2011)

I do not understand the banks. If you get financing you are willing to pay for the house that is underwater. The unwilling bank will forclose and take a financial hit.

Do not give up so easy. Do you have the income to support the mortgage if you get new financing? If you do and you have good credit you should be calling your congressman. Washington continues to vent about the housing crisis, see if your congressman can lead you in the right direction. It is worth a shot.

If you give up, the bank will forclose and your credit will be destroyed. Keep fighting!!


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## sirdano (Dec 30, 2011)

gonefishin said:


> I do not understand the banks. If you get financing you are willing to pay for the house that is underwater. The unwilling bank will forclose and take a financial hit.
> 
> Do not give up so easy. Do you have the income to support the mortgage if you get new financing? If you do and you have good credit you should be calling your congressman. Washington continues to vent about the housing crisis, see if your congressman can lead you in the right direction. It is worth a shot.
> 
> If you give up, the bank will forclose and your credit will be destroyed. Keep fighting!!


I second this about getting congressman to help. What happen to us I had to move due to no more work in Dallas but company would relo to Austin. House never sold for the first year and could not keep paying rent and mortage. Tried short sale and bank would get offers but would sit on them. This happen for six months. We finialy called John Coyrn in Texas and next week the house was gone.


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## Anubis (Jul 12, 2011)

Also, make sure you check on the tax implications of walking away from your mortgage. You could be stuck with owing taxes on the forgiven debt.

I saw this mess coming and started trying to sell our too-large house back in 2007. I also saw the end of my marriage coming up fast, and intertwined the planning. I slashed the price as much as I could and got out while the getting was doable, even though I had to bring a check for $5k to closing. I have been renting ever since, and have been thankful for the mobility. The guy who bought the house from me suffered some bad fortune, and has been unable to sell it for 18 months now (it's been empty all that time) - at 20% less than he paid for it.


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## NotSoSureYet (Nov 10, 2011)

We are trying one more refi outlet. We'll find out this week if it will happen. We've been approved, so that's a good thing. I'll keep ya'll posted. Thanks for the congressman suggestion!! I'm going to call this week once we find out the outcome of this next step.


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## Samcro (Feb 12, 2012)

we are in the process of a short sale to get out of our house. the bank (bofa) said to just sit in it till it sells.. we get visitors but no bites.. and we are saving what little we can so when we move out we have something.


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## diwali123 (Feb 17, 2012)

The attorneys general of a majority of the states just worked something out with the big banks to help people who are underwater. If your loan is owned by one of those banks you can get more help.
Be careful with foreclosure because they can come after you later for the difference between what you owed and what they were able to sell the house for. You are better off doing a short sale, deed in lieu of foreclosure or declaring bankruptcy. 
Sorry you're going through this.


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## sirdano (Dec 30, 2011)

Anubis said:


> Also, make sure you check on the tax implications of walking away from your mortgage. You could be stuck with owing taxes on the forgiven debt.
> 
> I saw this mess coming and started trying to sell our too-large house back in 2007. I also saw the end of my marriage coming up fast, and intertwined the planning. I slashed the price as much as I could and got out while the getting was doable, even though I had to bring a check for $5k to closing. I have been renting ever since, and have been thankful for the mobility. The guy who bought the house from me suffered some bad fortune, and has been unable to sell it for 18 months now (it's been empty all that time) - at 20% less than he paid for it.


This is not true when we short sale and had 50K in forgiven money you donot have to claim that. This was in turbotax.

Here is the article
Home Foreclosure and Debt Cancellation


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