Foreclosure Timeline

[Esme56]

Hi Everyone,

I am hoping some of you can give me some feedback regarding how long the whole foreclosure process is taking these days...From what I've read it takes at least 6 months, is this correct? I just missed my first payment this month (with B of A, in Cali)and am really hoping to just be done by Sept. or Oct. I am going to enjoy some months of "free rent" but I've got a great place lined up to move into and I need to do it by Sept.

So, if the foreclosure process is not complete, I guess my next steps would be to mail the bank the keys but continue to pay homeowners. Does that sound correct?

Thanks!

[ProfessorShays]

Best to talk in terms of minimum time since you really can't identify how long it will take your lender to complete the process since it depends on a variety of factors including issues like personnel workload, etc. In California the minimum time a lender can complete a non-judicial foreclosure is three (3) months and twenty-one (21) days.

Daniel

[KT in CA]

Normally from when the NOD is filed, right Professor?

KT

[Melissa]

We have friends who just filed bankruptcy and lost their house, and they said from their experience and from that of others they've talked to, it's taking longer for the banks to foreclose right now due to the backlog. I think they were in their house for 9 months before they had to move. We're in Oregon.

[ProfessorShays]

KT wrote, "Normally from when the NOD is filed, right Professor?"

Yes, sorry about leaving that out.

Daniel

[Dizzle831]

And would the 90 moratorium on foreclosures in CA ultimately extend this process? So if the lender had their sh*t together we/ borrower could potentially be looking at;

90 days for lenders to file NOD.
90 day moratorium
3 month + 21 days

Not sure where the moratorium would fall in the process but we could be looking at a grand total of 9 months and 21 days. And as some people have pointed out with the back log it could be even longer.

KT wrote, "Normally from when the NOD is filed, right Professor?"

Yes, sorry about leaving that out.

Daniel

[KT in CA]

I don't think the 90 day moratorium applies to everyone. First and foremost the lender has to have a loan modification program in place that meets the guidelines the governor put in place. If they do, then they are exempt from it. And I think a lot of them do. I'm not sure on all the details, but I wouldn't assume you have the additional 90 days until you find out if your lender is exempt or not. And how you find that out, I have no idea.

[Dizzle831]

Thanks KT.

Not sure if BofA has any of these guidelines in place and not sure if i care since the only way i would stay in my home is if they wrote down the principal. And we know that is not likely.

I don't think the 90 day moratorium applies to everyone. First and foremost the lender has to have a loan modification program in place that meets the guidelines the governor put in place. If they do, then they are exempt from it. And I think a lot of them do. I'm not sure on all the details, but I wouldn't assume you have the additional 90 days until you find out if your lender is exempt or not. And how you find that out, I have no idea.

[sharona]

My tax accountant told me today his clients are reporting it is taking 12 months or more to foreclose in San Diego County.Thats how back logged we are.

[Esme56]

12 months...arrrrgh. I know that is good news for some who want to stay as long as possible. I am just hoping to get this thing over with and start fresh!

[KT in CA]

I have a feeling it really depends on the lender and how backlogged they are. Though all of them seem to be backlogged, we know 2 people who were foreclosed on in 6 months.

[medic]

KT in CA

Regarding, The 2 people you know who were foreclosed in 6 months. What that 6 months after NOD was filed? Do you know who the lenders were?

FYI, a guy a work with was foreclosed in 14 months. I will try to find out who the lender was and post it for those who are interested.

[KT in CA]

I believe one of the lenders was GMAC and the other was Countrywide (which I was surprised that they were so on the ball). I believe it was 6 months total since they both stopped paying, or a little over 3 months after the NOD was filed. The one with GMAC lived in our court. I think he stopped paying in May and his trustee sale was end of November/beginning of December. I remember seeing it in our paper. They may not have been exactly 6 months, but it was less than 8.

[Esme56]

KT...thanks for the info!

Has anyone had any experience with B of A?...it doesn't seem like I have read many posts from people who have their mortage with B of A...lots of countrywide and chase though .

[Dizzle831]

I have BofA as well. I heard some nasty stories of them calling neighbors and family members after missed payments and since i'll be missing my first payment this month i'll be sure to report back to verify!

Esme, have you attempted to call for a Mod yet? I think i'll entertain the idea sometime this week. It will be interesting to see what they put on the table.

KT...thanks for the info!

Has anyone had any experience with B of A?...it doesn't seem like I have read many posts from people who have their mortage with B of A...lots of countrywide and chase though .

[RimToRimHiker]

I have GMAC loans (80/20). I'm 2 payments down on each. We're hoping for 8 or 9 months of "free rent" but we'll be happy with 6 or 7. So far just phone calls. No late notices. Of course, now that I've written this a letter will come tomorrow.

Dizzle831: I thought about playing the loan mod game to buy time but my attorney discouraged me because of all the financial info the lender would require before they would even come back to me with an offer. He warned me the lender may use the info to bite me in the a-- later at a later date. Just some food for thought.

[Esme56]

Dizzle- I have not tried a loan mod...to be honest I am not really interested unless it included a huge principle reduction...I'm too far undewater to make it worth it.

[Dizzle831]

RimHiker, You know i was thinking the same damn thing about providing my financials for that reason. Other than being underwater by 250k and dealing with recent pay cuts my wife and i can scrape by IF we had to but i'm tired. And as you pointed out will probably get denied because we can "afford" it but i refuse to lower my quality of life to stay in this tiny house and crap neighborhood. I'll still call to see what they say, but thanks for the slap of reality. I need that sometimes!

I have GMAC loans (80/20). I'm 2 payments down on each. We're hoping for 8 or 9 months of "free rent" but we'll be happy with 6 or 7. So far just phone calls. No late notices. Of course, now that I've written this a letter will come tomorrow.

Dizzle831: I thought about playing the loan mod game to buy time but my attorney discouraged me because of all the financial info the lender would require before they would even come back to me with an offer. He warned me the lender may use the info to bite me in the a-- later at a later date. Just some food for thought.

[RimToRimHiker]

I had a round and round conversation with GMAC last week. I asked what kind of loan mods they were writing. I asked to be transferred to someone in that dept. The nice lady on the phone (who was probably in a call center 1/2 way round the world) told me I could not speak to someone in that dept until I filled out a loan mod pkg. I told her I would not fill out a pkg without hearing what kinds of loan mods their were writing. We're about $100K underwater and counting. We went round and round for awhile and then I told the lady to have a nice day and I jumped off the merry-go-round.

[baileys dad]

Hello,
Rim- Arizona is a non-recourse state right? So if you have purchase loans they cannot do anything beyond foreclosure is my understanding. Don't know your state, Dizzle, but if in Ca., the same thing applies. They are probably not going to tell you anything without financials. My second mortgage offered to drop my payment by 30% because I am 120 days late and the first has filed a NOD (in Ca.) The drop in prop values has wiped out the second's security in the property. However, their offer is not enough, but if I wanted to get a further reduction, I will need to provide more documentation. Which I will eventually do, but I am just letting them sweat for a while....all is contingent upon my first providing a reasonable modification.

[Dizzle831]

Yea, I'm in CA. Thank Goodness. I'm counting down the days until I'm officially late this month. It seems like in your case the banks are actually pulling their heads out of their a**** and offering a principal reduction. That's Awesome! Hopefully your first will follow suit.

The one thing i do have going against me is i refi'ed a couple of times to hop into a conventional loan (from an 80/20) and escape ARM's making my loan recourse. Prof. Shays though has mentioned countless times that lenders in CA rarely if ever seek a judicial foreclosures so i should be safe from a deficiacny judgement.

Like i said, i'll entertain the the thought of a Loan Mod if it comes my way but i'm not being optimistic by any means. But i do hope things workout for you and your family. Good Luck!

Dizzle

Hello,
Rim- Arizona is a non-recourse state right? So if you have purchase loans they cannot do anything beyond foreclosure is my understanding. Don't know your state, Dizzle, but if in Ca., the same thing applies. They are probably not going to tell you anything without financials. My second mortgage offered to drop my payment by 30% because I am 120 days late and the first has filed a NOD (in Ca.) The drop in prop values has wiped out the second's security in the property. However, their offer is not enough, but if I wanted to get a further reduction, I will need to provide more documentation. Which I will eventually do, but I am just letting them sweat for a while....all is contingent upon my first providing a reasonable modification.

[RimToRimHiker]

Bailey's Dad: Yep. A Big Yahoo for that!!! We moved here from FL. So glad we are not going through all this in that state. Our old neighbors are facing foreclosure and it's not looking good at all for them. They think they will be facing a deficiency judgment of $60-$80K.