I am in CA and planning a "buy and bail". I want to be sure the foreclosure is wrapped up before the end of 2012 so that I can advantage of the Debt Relief Act. We are home shopping, and feeling the pressure of finding something soon. It would be really helpful if I knew we had at least 12 months following the first missed payment. That gives us a few months to find the right house.
Any advise or insight?
Thanks
UMMMMM! Wow! Are you for real?Originally Posted by timetogo
Okay. I just had to google what you meant. You want to secure a new house and bail on your old one? We had to do that. My husband lost his job and had to move three hours away. We build a new house (he's a home builder...see the hardship?). We have been very helpful and nothing after 9 months. We have tried DIL and still nothing. I would think it would take over a year!
Timetogo,
Is it safe to assume that the home you are walking away from does NOT have purchase money loans associated with it? The reason I ask is that because you are in CA if the loans securing your "bail" residence are purchase money, they are non-recourse (which you probably knew) and because they are non-recourse (if they are) the Debt Relief Act that ends in 2012 does not affect you. If your loans are non-recourse, there is no cancellation of debt income to exclude under that Act. As I always caution, without knowing your exact tax situation I cannot comment with 100% certainty, but if you have purchase money loans then you very likely will not have any tax issues resulting from the foreclosure even if it doesn't occur until 2013.
If you do NOT have purchase money loans, then your thinking is right on the money. I don't know if a way to accelerate the banks repossession of the property. I would probably call the bank and tell them it is vacant (even if it isn't) because the banks don't like vacant empty properties, even if the homeowner still technically owns it.
Other than that, I'm really not sure. The banks are in control here unfortunately.
J
I've seen similar needs, whether realized or not, in some other threads, and include myself in that as I want to get one done before the end of 2012. While it is possible the "Debt Relief Act" may be renewed/extended , it's not something we can bank (haha) on. But, I wonder if this won't become a tactic of the BANKS towards the end of this year and into next: drag their feet and imply a "quicker settlement" if you bring some money to the table. Consider the reasoning - you can pay them or you can pay IRS. Just something that is rattling around my head.
Wow. Super cynical. But it wouldn't surprise me in the least if you were right.
Location: Baltimore, MD / Recourse state
1st missed payment: 1 Sept 2010
First Mortgage: Over a year since last payment and no foreclosure activity
Second Mortgage: Lawsuit has been filed against me in Circuit Court
Bankrupcy: Filed. Take that you SOBs!
A Maryland Sob Story for the whole astonishing story
I'm a realist; every realist must be a cynic. Also, lived a long time and experienced enough. It may be imaginary but it might be best to proceed as if it were true. The alternative is to accept that everyone in banks is stupid. Experience may support that but I have to wonder how many levels would accept that. It's their tactic, too. The frustration of fighting one's way through a bale of wet cotton.
the minimum is 8 months right?? anyone else validate this??
A little under 7 - 3 months to NOD, 3 months to NOS, 3 wks generally to sale date, give or take 10 - 12 months due to lender backlog, lender confusion, investor policies and the real estate market in your area, among other things. Basically, trying to gauge how long your foreclosure will take is pointless.
Life isn't about waiting for the storm to pass. It's about learning to dance in the rain.
I'm about to leave my house as well and while I'm going to start with a Short Sale attempt, if they Foreclosed on me that would be fine too. The sooner the better since I won't be living there anymore (I've been in default for three years and it's time to move on). Any advice on speeding up the process like the mentioned above 'call and tell them its vacant' - has anyone tried that? Does it help? Thanks!
We all know lots of people who have done lots of things that have "seemed" to PROLONG the forclosure, with varying degrees of success. No one that I know of, that posts on here, has ever found a way to speed it up. The banks gonna' do what the banks gonna' do. For as many people as there are that want to slow it down, there are just as many people who want to speed it up. But, again, no one has any clue.
I think absolutely no contact with them: no answering phone calls, responding to door knockers or letters makes it go as fast as it can but I do not think it actually makes it any faster than it would be allowed by law. I believe if you have contact with them then your file might get pulled or set in a different pile or a different action might be taken so that in effect could slow you down a bit.
I did not realize there was so many posts on this thread. So, My last payment was in July 2011. I have made no contact at all - ever. I received my NOD in May. It says 90 days to sale. It was vacant, which they knew, but I later moved in a family in need to care for it. They cover utilities only. I became uncomfortable with the insurance situation. I wanted to maintain my coverage, but vacant policies are crazy expensive.
Timetogo my last payment was June 2011 and my foreclosure finished in Feb. So I guess it just depends on a lot of things like the state you are in, who the bank is etc.
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