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Guest

Hello. Im writing this on behalf of my father whose condition is very serious and will be unable to work anytime soon.
My father was the only source of income to pay the mortgage, howerver at this situation we are about 25 days behind with our house mortgage payments. Actually we have 2 mortgages on our house. We never were late with our payments except when our father was diagnosed with serious health problems (in fact the doctor says he wont be able to hold more than 2-4 months).. so I'd like to ask couple of questions..

1. My mother doesnt work, her name is on the title of the house, but her name is not on the mortgage. Will she still be responsible for the mortgage after my father passes away? If yes, can we remove her name in a reasonable amount of time from the title? Will she still be responsible after her name is removed from the title?
I must add we DONT want to keep the house. If we could we would give the house to the bank tomorrow and move out the very same day.. anyway;

2. Ive also read some stuff about dead-in-lieu foreclosure. Is there a way to apply for this kind of foreclosure? I called the first mortgage lender and they told me that the normal foreclosure process starts after payments are 3 months behind. Howerver this generates huge stress on our family. I'd rather have deed in lieu done and move on with our lives ASAP.

3. Also when I called the first mortgage lender (wamu) they told me they will send me some kind of packet(forms?) to fill out. When I asked them how is this gonna help us I didnt receive an answer. Any idea what that could be?

4. Lets say the actual foreclosure takes place. We get evicted and we didnt pay mortgage for lets say 6 months. Are we still gonna be responsible to pay for that 6 months? What about other foreclosure fees? Will this be decided by the court (Im assuming they whole foreclosure process takes place in the court) or by the lender? Will they consider my father illness and our willingess to move out from the house? Also, since we have no money to pay for mortgage we wont have money to pay for any additional fees as well, will the lender take away our personal things (cars, furnitures, tv or access our bank accounts and take away last savings) to cover the outstanding debt?

Sorry for so many questions. We will be going with this questions to the 2 lawyers as well but its good to hear other people's opinions as well. thanks guys.

Caron

Hi Rem,

Welcome to the forums.

Let me answer your first query.

Since you are already 25 days behind on your payments, so in case you or your father cannot make the payments, your mother has the liability to pay it as her name is on title. Even if your father passes away, your mother has to pay since she is on the title. This will actually help her to save the home from being foreclosed.

You can remove your mother's name from the title using a quit claim deed. But it depends on the lender as to whether he will allow you to do so. This is because he will be considering how he can get back the money from you. Also, if you add someone else to the title, either he has to take the liability of paying the mortgages or you need to transfer the mortgages to some other person who will pay them on your behalf.

If you do not wish to keep the house, then you may ask the lender for a foreclosure. But a foreclosure does affect your credit status negatively. So give it a thought before you give the house to the bank.

Thanks,

Caron.

sara · Posted: Wed Sep 27, 2006 9:49 pm Post subject:

Hi Rem,

Guest

Guest

Hi,

As much as I know, the foreclosure fees are paid to the lender before the date of the sale of foreclosure. So, it's the lender who will decide upon the fees.

Guest

Hi,

Caron · Posted: Thu Sep 28, 2006 2:37 am Post subject: RE:

Hi Rem,

Guest

Thank you guys so much for the info. I will read more about deed in lieu and for now Im expecting this documents from my lender to come in mail. I will go to the lawyer after I will receive this documents.
Also I forgot to say that we put house on sale about 2 weeks ago. We didnt have any seriouss offers, even though we had open house last weekend. We will be dropping the price of the house a little and see how it goes.
Thank again.

Guest

Sorry for double post as I cant edit my previous one.
Will my credit score be affected by the foreclosure? Im the owners son but my name is not on the title or anything.
Thank you.

Guest

Hi Rem,

Your credit score will not get affected as you are not liable for the mortgage payments. Foreclosure has effect on credit score of only those who are involved with the mortgage payment.

Thanks
R.Baker

sara

Hi Rem,

Foreclosure and deed in lieu cannot affect your credit score as your name is neither on the loan nor on the title. Also, if you are not the cosigner or co-borrower, then your score will not get affected.

Thanks,

Sara

Guest

Hi,

I think you are doing the right thing. By reducing the sale price, you may get a suitable buyer. You can also do short sale if the lender may be willing to forgive a part of the loan balance. The sale proceeds will then be used in paying off a certain amount of money owed to the lender.

Guest

Hi,

Instead of a deed in lieu, you can do short sale where the lender allows the borrower to pay a certain percentage of the debt and forgives the unpaid debt. Since you don't wanna keep the house, short sale can be done. But you need to talk to the lender about this sale.

Guest

Thanks for suggestions.
Jeromes, you are saying that in short sale, the borrower forgives about the unpaid debt if we pay a certain percentage f debt. If I get this correct we will have to pay the borrower some amount of money, however we dont have any money to spare at all..

Also, could you put house on auction by yourself to sell it fast or auction could only happen when there is a foreclosure?

Guest

Hi Rem,

In short sale, the borrower sells off his property at the permission of the lender in order to repay the mortgage. The borrower pays off a certain amount of debt from the sale proceeds while the lender forgives the rest. So, you need to pay at least some portion of the debt so that the lender can forgive the remainder.

You can take a real estate agent's help and arrange for an auction on your own.

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