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rcox · Joined: 19 Jan 2008 Posts: 1 1.83 Dollars($)

ive stated before that ive been late 5 times on my payments .i have a first and a second and my payment has peaked 700 above my initial payment also my taxes are not included in my payment so thats another 3-4 thousand a year. home loan 309- home value 289-. the area avg. is around 210. my other bills are starting to pill up. so i thought i should get out now and get on a ten year plan to buy again .my question is if i just give back to the bank can they come after me for any money later. if there are other options same question . i dont want to owe any or pay anymore money for this house. cant refi. due to value and credit 500. if i try to wait it out historically how lond does it take to regain a equity when your negative.

helping_user

Welcome Rcox.

The bank can come after you for money if it cannot recover the money from the home. That is, when you hand over the property to the bank, in other words, when you go for deed-in-lieu, the bank will try to sell your property and recover the unpaid debt. However, if the bank cannot get enough to cover the debt, you no longer remain responsible for any deficiency. That is how deed-in-lieu works.

Now, what you can do is, talk to the lender about giving them the property or else you can also go for a sale and then pay off the debt using the proceeds. While you do, it may not be possible to recover the entire debt. In such a case, the lender can seek the deficiency or else you can request him to forgive the debt.

Right now, you need not pay any tax on forgiven debt. But there are rules for forgiven debt. So, check them out with your lender and also find out if he can suggest some more options, considering the fact that he has an interest in the property.

Thanks

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Rcox.

I agree with above poster that you can talk to your lender and try to go for deed in lieu of foreclosure. If the lender agrees for DIL you will need not to pay the difference but lenders don't always agree for DIL.

If the lender doesn't agree for DIL you can try out short sale but in that case you will have to pay the deference between the sale price and the debt you owe. Short sale will hurt your credit lesser than DIL.

Feel free to ask if you have any further questions.

Best of luck,
Larry

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

Hi Rcox,

It is impossible to determine how long it will take to regain equity. It just depends on the area and the demand for housing. If you are not going to keep the home then you could look into a deed in lieu instead of foreclosure. In this case, the lender does not come after you if there is a shortage on the sale. If you do let it go to foreclosure then the lender can come after you for the deficiency amount but if you choose to file bankruptcy then this can be included. I hope this information helps you make the decision that is right for you.

patricia · Joined: 16 Jan 2008 Posts: 133 0.94 Dollars($)

We had a van that we could not make the payments on after a move to another state .We allowed them to reposess the van. By that I mean we told them we could not pay that they could come pick it up.They in turn sold it and sent us a bill for the rest owed. Is that the way it is supposed to go?

jeffselan · Posted: Wed Feb 06, 2008 7:09 am Post subject: Patricia

Yes, although, understand, you will likely want to contact the bank to make payment arrangments on the remaining balance for the van.

patricia · Joined: 16 Jan 2008 Posts: 133 0.94 Dollars($)

They took a way low bid on it. Why do banks sell at the lowest price like that?If they had put it up for sell instead of auction it would have brought more.

jeffselan · Posted: Thu Feb 07, 2008 4:49 am Post subject: Well..

It's complicated, but, the main reason is shear volume. The banks don't have the time to wait and sell them.

Sometimes they sell the repos to car lots, sometimes not. It is easier for the bank to store them at auction after the repo company holds then for you to take the opportunity to pay your account current and reclaim the property.

What the car goes for at auction depends on the market for the car, the repairs that need done, and the general strength of the auction.

patricia · Joined: 16 Jan 2008 Posts: 133 0.94 Dollars($)

The man who came and got our van gave it a good report ,no repairs were needed and everything was fine as far as that goes.

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

that is good! Very Happy

jeffselan · Posted: Fri Feb 08, 2008 7:21 am Post subject: The man

The man you were speaking to likely has nothing to do with the auction besides taking it there.

patricia · Joined: 16 Jan 2008 Posts: 133 0.94 Dollars($)

True ,I was just stating that the condition of the van ,there was no reason it could not have brought more money.It just looks like the companies don't try to get the best price for the things they repossess.

jbarto65 · Joined: 04 Nov 2007 Posts: 622 -0.15 Dollars($)

they will not try to get anymore than they have to, they are just trying to recover money for the van now, as far as the balance goes, they can sue you for that or have a judgement placed on you. This reposession will haunt you for a long, long time.

You should contact them and set up payment arrangements as soon as possible, because once the vehicle is sold and they know the balance, they will pursue action to get the rest of the funding.

patricia · Joined: 16 Jan 2008 Posts: 133 0.94 Dollars($)

To late, that was 10 years ago. The same happened to us with a mobile home we bought. We lived in another state at the time in a mobile home park.We owned and rented out several mobile homes in the same park where we resided. This was a brand new mobile home..The roof was faulty and we did not know till we found water soaking my then small son's carpet in his bedroom closet. I soaked up the water just to have it reappear. We ended up contacting the insurance and then it was a mess. We had to have an inspector come in and he fell through the closet floor!After all was said and done my son was very sick and we learned he was very allergic to mold cause by all the water from the roof.It was being held in the plastic underneath the mobile home.The mold spread everywhere. The insurance company did bandaid repairs and left like moldy insulation in the walls. meanwhile my son was breaking out if hives and having asthma attacks from all the mold. We got a lawyer and they advised us to abandon the home.Thats what we did. It is hard to believe it all happened but thats the way it went .That was 11 years ago.The mortgage company sold the mobile home and sent us a bill for the remaining thousands of dollars which we never paid. We were really angry over the whole deal.

Caron · Posted: Sun Feb 10, 2008 11:56 pm Post subject: RE: bad mobile home deal

So, patricia, didn't the mortgage company report non-payment of dues to the bureau and didn't it get reflected on your credit report? Or was that a deed-in-lieu? Even then, you may have paid a lot of taxes. The problem was not with the company but the person from whom you bought the mobile home. Didn't you talk to him about such faulty house condition?

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