Please help! If I allow bank to put my home in foreclosure, do I get any net proceeds from the sale?

[Matzie]

Just wondering if I allow the bank to go thru with this foreclosure, and the home sells for more than the balance, do they give me the difference, or most of it. We have been thru illnesses and car wreaks which cause my wife to break her neck, so we cannot pay the mortgage as it is...and am worried sick, because my only form of income id SS Disibility. Please help, thank you! Matzie

[Evan Bedard]

Welcome and thanks for joining the community..

I'm not sure if you are aware but home values across the country have dropped a significant amount over the last few years so you may actually owe more on your mortgage than your property is currently worth.. You can use website such as Zillow to get an estimate of your current property value..

I'm so sorry to hear what has happened to your wife in the car accident.. Have you considered applying for a loan modification or possible a forbearance to help lower your monthly payments and avoid foreclosure?

You definitely will want stick around this forum and feel free to join other discussions. Most everyone here is a homeowner just like you and are having difficulties affording their monthly payments and/or walking away from their property..

[UNDERinLV]

I see how you have fallen on hard times, but if you have equity in the house, and you know you can't keep it, why don't you put it up for sale before this becomes a bigger mess?? Then you can keep the proceeds (probably pay whatever you owe on the loan for missed paymens) and then take your cash and rent?? If I had any equity (more than 1 years worth of payments) I'd sell the place and keep my own money...Just a thought..

[Matzie]

Thanks...problem right now is..the bank wants to foreclose in 9 days....so we can't really sell it in htat amount of time. Any other suggestions. Mickie

[Evan Bedard]

Thanks...problem right now is..the bank wants to foreclose in 9 days....so we can't really sell it in htat amount of time. Any other suggestions. Mickie

Are you sure the foreclosure date has been set for nine days from now? Or did you receive a notice of intent to foreclose warning you that foreclosure proceedings will occur if you do not make the entire past due amount within xx amount of days?

[Matzie]

Are you sure the foreclosure date has been set for nine days from now? Or did you receive a notice of intent to foreclose warning you that foreclosure proceedings will occur if you do not make the entire past due amount within xx amount of days?

I am not sure now. None of the forms and letters states a date for foreclosure. I got the date of 1/21/12 from an email from the Banks office which says, "Your loan is scheduled to go into foreclosure on 1/21/12". But that isn't a formal notice is it? So maybe I have more time.

Why isn't the bank willing to take partial payments...its pay all back payments or nothing? THANKS again!

[Evan Bedard]

I am not sure now. None of the forms and letters states a date for foreclosure. I got the date of 1/21/12 from an email from the Banks office which says, "Your loan is scheduled to go into foreclosure on 1/21/12". But that isn't a formal notice is it? So maybe I have more time.

Why isn't the bank willing to take partial payments...its pay all back payments or nothing? THANKS again!

Unfortunately, once you fall 60-90 days behind on your payments the servicer is not going to accept any payment unless it is for the entire past due amount along with any late fee, attorney fees, etc.. You should be sent a notice by mail notifying you when the sale date is to occur, through a Notice of Sale/Notice of Trustees Sale.. It sounds like this is more of a notice of intent to foreclose which is really just informing you that foreclosure proceedings may begin after 1/21.. I would call in right away to verify that this is not the actual sale date for your home.

[Jeffrey L. Shurtliff]

What state are you in? It sounds like your foreclosure is just beginning.

[Matzie]

Unfortunately, once you fall 60-90 days behind on your payments the servicer is not going to accept any payment unless it is for the entire past due amount along with any late fee, attorney fees, etc.. You should be sent a notice by mail notifying you when the sale date is to occur, through a Notice of Sale/Notice of Trustees Sale.. It sounds like this is more of a notice of intent to foreclose which is really just informing you that foreclosure proceedings may begin after 1/21.. I would call in right away to verify that this is not the actual sale date for your home.

I will call them on Monday...too late now. How can an informal email be an official notice of a date of foreclosure?

[Matzie]

Unfortunately, once you fall 60-90 days behind on your payments the servicer is not going to accept any payment unless it is for the entire past due amount along with any late fee, attorney fees, etc.. You should be sent a notice by mail notifying you when the sale date is to occur, through a Notice of Sale/Notice of Trustees Sale.. It sounds like this is more of a notice of intent to foreclose which is really just informing you that foreclosure proceedings may begin after 1/21.. I would call in right away to verify that this is not the actual sale date for your home.

I am in Wyoming. Thanks all!!!!

[Evan Bedard]

Yes I highly doubt it was an actual notice of sale.. They must give you written notice prior to initiating the foreclosure process:

How are Wyoming mortgages/trust deeds foreclosed?

The primary method of foreclosure in Wyoming involves what is known as non-judicial foreclosure. This type of foreclosure does not involve court action but requires notice commonly calledforeclosure by advertisement. When thetrust deed is initially signed it will usually contain a provision called apower of sale clause, which upon default allows atrustee to sell the property in order to satisfy the underlying defaulted loan. Thetrustee acts as a representative of the lender to effectuate the sale, which typically occurs in the form of an auction. Because this is anon-judicial remedy, there are very stringent notice requirements and the legal documents are required to contain thepower of sale language in order to use this type of foreclosure method.

Power of Sale Notice Requirements:

Prior to initiating a foreclosure the lender must file a written notice of intent to foreclose to be personally served at least 10 days before the first publication of the sale date. A copy of the notice of default must be published for 4 consecutive weeks in a newspaper of general circulation in the county in which the property is located and if there is no newspaper of general circulation in the county then in a state circulated paper in the county the property is located.

[Matzie]

Yes I highly doubt it was an actual notice of sale.. They must give you written notice prior to initiating the foreclosure process:

How are Wyoming mortgages/trust deeds foreclosed?

The primary method of foreclosure in Wyoming involves what is known as non-judicial foreclosure. This type of foreclosure does not involve court action but requires notice commonly calledforeclosure by advertisement. When thetrust deed is initially signed it will usually contain a provision called apower of sale clause, which upon default allows atrustee to sell the property in order to satisfy the underlying defaulted loan. Thetrustee acts as a representative of the lender to effectuate the sale, which typically occurs in the form of an auction. Because this is anon-judicial remedy, there are very stringent notice requirements and the legal documents are required to contain thepower of sale language in order to use this type of foreclosure method.

Power of Sale Notice Requirements:

Prior to initiating a foreclosure the lender must file a written notice of intent to foreclose to be personally served at least 10 days before the first publication of the sale date. A copy of the notice of default must be published for 4 consecutive weeks in a newspaper of general circulation in the county in which the property is located and if there is no newspaper of general circulation in the county then in a state circulated paper in the county the property is located.

Do I understand this correctly....that the actual sale date would be at least 4 weeks after the formal notice of foreclosure. Thanks again for your help!

[Jeffrey L. Shurtliff]

You will get a notarized NOTICE OF DEFAULT letter served on you by certified mail. Shortly after that you will get a notarized Substitution of Trustee which is an instrument that authorizes the Trustee to invoke the power of sale in your DEED OF TRUST.
After that you have a 90 day redemption period. Then a NOTICE OF TRUSTEE'S sale will be served on you by certified mail and after that it will be published in the paper under legal notices for four consecutive weeks. Timeline here is about 120 to 130 days. So if I were you I would put the house on the market immediately.
Here are some Wyoming foreclosure facts:
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 90 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Wyoming, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of
sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

1. Written notice of intent to foreclose the mortgage by advertisement and sale must be served upon the record owner, and the person in possession of the mortgaged premises (if different than the record owner), by certified mail with return receipt, at least ten (10) days before the first publication of notice of sale.
   
   The notice must be published at least once a week for four (4) consecutive weeks in a newspaper printed in the county where the property is located. If there is no newspaper printed in the county, then the notice must be published in a paper printed in the state and of general circulation in said county.
   
   Said notice must specify the name of the borrower, the lender and the lender's representative, the date of the mortgage and when it was recorded, the amount of the default, a description of the property and the time and place of sale.
2. The sale must be held at the front door of the courthouse of the county in which the premises to be sold, or some part of them, are situated, between the hours of 9:00 am and 5:00 pm, and must be conducted by the person appointed for that purpose in the mortgage or by the sheriff or deputy sheriff of the county. Anyone may bid, including the lender. The highest bidder will receive a certificate of purchase.
   
   Such sale may be postponed from time to time by inserting a notice as soon as possible in the newspaper in which the original advertisement was published and continuing such publication until the time to which the sale shall be postponed, at the expense of the party requesting such postponement.
3. The borrower has three (3) months from the date of sale to redeem the property by paying the amount of the purchase price or the amount given or bid if purchased by the execution creditor or by the mortgagee under a mortgage, together with interest at the rate of ten percent (10%) from the date of sale plus the amount of any assessments or taxes and the amount due on any prior lien which the purchaser paid after the purchase, with interest.

Lenders may obtain deficiency judgments in Wyoming.

[Matzie]

This is SO HELPFUL...thank you so much. If, like you say, we have 3-4 months to sell our house before the bank can, I am sure that is possible, and the best result for us. Wyoming hasn't been hit as hard financially concerning the housing market as most of states because of our coal, oil and gas reserves and no personal income tax. Anybody else agree or disagree with this nice answer. God Bless all of you who come on to this forum to help people in your own time! Mickie

[Jeffrey L. Shurtliff]

I wish you the best of luck in selling and moving on in your life, blessings to you!

[Matzie]

By the way, the fincial statement the bank wants me to fill out asks if i have filed bankruptcy. Would they see that as a good thing in granting a mod...because I could do that at the same time with all our medical bills.?

[Evan Bedard]

By the way, the fincial statement the bank wants me to fill out asks if i have filed bankruptcy. Would they see that as a good thing in granting a mod...because I could do that at the same time with all our medical bills.?

If you are thinking about requesting a loan modification be aware that the bk filing will put a hold on anything you have in process. Once you file bk an automatic stay will be placed on your mortgage and the servicer cannot negotiate a loan mod or move forward with foreclosure proceedings until they get permission from the court to remove the stay.. Filing bk will only prolong the loan mod/foreclosure process..