Posted on: 22nd Jul, 2008 08:26 pm
Last year we lost our home in a foreclosure. It went to sheriff sale although I was trying to work with the mortgage company to get the situation resolved and had the money to get caught up.
The loan was FHA insured, so it seemed almost as if they were giving me the run around because they were able to write off any loss. The home sold for much less than what it is worth, and what we had owed. We ended up with a $59000 debt to the Dept. of Treasury. We owed about $114000 on the home and it sold for less than $60000 at auction.
Very soon if I don't come up with an alternate plan I will be garnished, and obviously it will take some time to pay a debt this substantial. Are there any other options available to me? Although the debt was our resonsibility it does not seem fair that we are forced to pay this amount for something we no longer own, simply because they expedited foreclosure and sold it for less than what it was worth. Thank you in advance for any help.
The loan was FHA insured, so it seemed almost as if they were giving me the run around because they were able to write off any loss. The home sold for much less than what it is worth, and what we had owed. We ended up with a $59000 debt to the Dept. of Treasury. We owed about $114000 on the home and it sold for less than $60000 at auction.
Very soon if I don't come up with an alternate plan I will be garnished, and obviously it will take some time to pay a debt this substantial. Are there any other options available to me? Although the debt was our resonsibility it does not seem fair that we are forced to pay this amount for something we no longer own, simply because they expedited foreclosure and sold it for less than what it was worth. Thank you in advance for any help.
Did you get a 1099? Was it a public auction?
How is it that you owe this money?
How is it that you owe this money?
Hi TLIGHT.
Welcome to the forum.
You have faced the foreclosure and the lender is seeking deficiency judgment....right. So it is your responsibility to pay the deficiency judgment and as you have said then can even garnish your wages. So talk to the lender try to work out a repayment plan with the lender to pay off the deficiency amount.
Feel free to ask if you have ant further questions.
Best of luck,
Larry
Welcome to the forum.
You have faced the foreclosure and the lender is seeking deficiency judgment....right. So it is your responsibility to pay the deficiency judgment and as you have said then can even garnish your wages. So talk to the lender try to work out a repayment plan with the lender to pay off the deficiency amount.
Feel free to ask if you have ant further questions.
Best of luck,
Larry
evolovik- Since it was a secured debt through the Dept. of Agriculture, Wells Fargo basically wrote it off and the debt was transferred to Dept. as a Single Family Housing Loss Claim, and they have been sending letters to say I have to pay the full amount.
On a side note, when this went through I consulted with a mortgage broker, who referred me to a private investor that bought my home at the auction price (during the mandatory redemption period). I am in a land contract for the home now until I can get back on my feet and get the house back in my name. This person has been good to work with and very knowledgeable and was very surprised that we received this debt against us. They had thought that the balance would have been written off and once we worked to get our house back we would be OK. Apparently not!
Larry- Unfortunately the lender was out of the picture right from the beginning. They were not working with me at all, and seemingly even "mishandled" the information they had requested to work out a payment plan to get back in shape. I tried to work with DCS who is handling the debt for the Dept. of Treasury, and the only thing they could do was offer a payment plan which was way out of line with what we could afford. it basically would have been more than our house payment, all while we are still making our land contract payment.
Hope this answers the questions you had. I appreciate your comments. This has all been very confusing and stressful. I wish I knew then what I know now about buying a home.
On a side note, when this went through I consulted with a mortgage broker, who referred me to a private investor that bought my home at the auction price (during the mandatory redemption period). I am in a land contract for the home now until I can get back on my feet and get the house back in my name. This person has been good to work with and very knowledgeable and was very surprised that we received this debt against us. They had thought that the balance would have been written off and once we worked to get our house back we would be OK. Apparently not!
Larry- Unfortunately the lender was out of the picture right from the beginning. They were not working with me at all, and seemingly even "mishandled" the information they had requested to work out a payment plan to get back in shape. I tried to work with DCS who is handling the debt for the Dept. of Treasury, and the only thing they could do was offer a payment plan which was way out of line with what we could afford. it basically would have been more than our house payment, all while we are still making our land contract payment.
Hope this answers the questions you had. I appreciate your comments. This has all been very confusing and stressful. I wish I knew then what I know now about buying a home.
Hi TLIGHT welcome back.
Ok it may be not a lender but a mortgage company but you still owes the deficiency judgment and you should try to pay it off. Contact with that company and try to work out some repayment plans.
Best of luck,
Larry
Ok it may be not a lender but a mortgage company but you still owes the deficiency judgment and you should try to pay it off. Contact with that company and try to work out some repayment plans.
Best of luck,
Larry
Hi Tlight,
If the lender hasn't sent you the 1099C form, it implies the debt has not been written off. It's true that you don't own the house anymore but you are in fact responsible for the repayment and that's the reason the lender has asked for the deficiency. What I would like to know is whether the loan was insured by the Dept. of Agriculture. Moreover, has the lender spoken of a garnishment yet? or is it what you're anticipating? In which state do you live? I'm asking this so that I can let you know about the redemption period.
If the lender hasn't sent you the 1099C form, it implies the debt has not been written off. It's true that you don't own the house anymore but you are in fact responsible for the repayment and that's the reason the lender has asked for the deficiency. What I would like to know is whether the loan was insured by the Dept. of Agriculture. Moreover, has the lender spoken of a garnishment yet? or is it what you're anticipating? In which state do you live? I'm asking this so that I can let you know about the redemption period.
This is indeed insured by the Dept. of Agriculture, and they(Dept. of Ag.) have notified me that my wages will be garnished to pay the $59000 debt.
I live in Michigan. and the redemption period is over but we had someone buy the property back before then so we could continue to leave here on land contract. I am willing to pay what I can but the repayment plans they offered were unreasonable. Understandably due to the size of the debt.
I live in Michigan. and the redemption period is over but we had someone buy the property back before then so we could continue to leave here on land contract. I am willing to pay what I can but the repayment plans they offered were unreasonable. Understandably due to the size of the debt.
hi tlight,
there's one way out by which you can avoid garnishment - filing chapter 13 bankruptcy. there are lots of misconceptions about bankruptcy. but the fact remains it actually has a positive effect on your credit if you can follow the repayment plan your trustee provides. know more on why chapter 13 may be a better option at times.
take care
there's one way out by which you can avoid garnishment - filing chapter 13 bankruptcy. there are lots of misconceptions about bankruptcy. but the fact remains it actually has a positive effect on your credit if you can follow the repayment plan your trustee provides. know more on why chapter 13 may be a better option at times.
take care
Hi
You have done a good question, it's really interesting. If you get any good reply, so please let me know. So I'll also get some good idea.
Thanks for your future help.
[Link deleted as per the forum rules]
You have done a good question, it's really interesting. If you get any good reply, so please let me know. So I'll also get some good idea.
Thanks for your future help.
[Link deleted as per the forum rules]
I have permission from the lender to do a short sale. I owe a first of $312,000 and a second of $49,000. I will be lucky to get $250,000 on the sale. I have a mobile home on half an acre in another state with no mortgage in a family trust I set-up. Can the lenders get this property for the balance owed?
Hi Judy,
Welcome to forums.
Is your mortgage a recourse or a non-recourse loan? check the note and find this out. If it is a recourse loan, the lender may come after your assets but I doubt whether he'll consider your mobile home. This is because the mobile home is situated in another state and in order to place a lien on that property, probably he'll have to take permission of the local court.
Thanks
Welcome to forums.
Is your mortgage a recourse or a non-recourse loan? check the note and find this out. If it is a recourse loan, the lender may come after your assets but I doubt whether he'll consider your mobile home. This is because the mobile home is situated in another state and in order to place a lien on that property, probably he'll have to take permission of the local court.
Thanks
What is the average % of dollars lenders agree to on repayment plans?example 10-20 cents on dollar.
Hi Ronald,
The average percentage of dollars that lenders agree to may vary. You need to contact your lender and check out the average percentage of dollars he would agree to.
Thanks
The average percentage of dollars that lenders agree to may vary. You need to contact your lender and check out the average percentage of dollars he would agree to.
Thanks