How long can you drag out the foreclosure process??

[mom2three]

I have a construction loan that is currently in default. This company has made our life very difficult....refusing to give us the rest of the funds to complete the home. We have tried everything to work out this problem with no success. Our hands are basically tied. My question is.....we know that we will not be able to finish this project and eventually the bank will get the home back, but how can I drag out this foreclosure process just to let them know how it feels????????

I don't mean to sound like a terrible person...but what these people have done is just wrong.

Any comments would be appreciated!

[Moe Bedard]

You're not a terrible person. This is just one of these eye for an eye things and you only can do what you can do. Now, you have to protect numero uno and that is you an your family.

As far as timeliness, it depends on your state. What state do you live in and how late are you?

[mom2three]

I live in Northern California. We just received the NOD last week. This is a private money investment company with a pool of investors. It is a construction loan and the home is only about 80% complete at this time.

[Moe Bedard]

Sorry Mom about the late reply here.

Here is some more info on California.

Once the Notice of Default records the foreclosure time frame begins. California foreclosure law states that within 10 business days a copy of the recorded Notice of Default is sent by certified and regular mail to the borrowers at all addresses provided and any recorded special requests.

Within 30 days a copy of the Notice of Default is sent by certified and regular mail to new owners and all junior lien holders to the Deed of Trust being foreclosed. A Trustee's Sale Guarantee Report is ordered from the title company providing all title information. The foreclosure remains dormant for the next 60 days unless the borrower makes contact to cure.

Publication Period

California Foreclosure Law

[mom2three]

No problem.....I am sure that you are busy too!

Thanks......that does help to answer my question. The bank has now offered to do a short-sale and I understand how this works........but not sure it really helps me.

The only way that it could help me is that this bank has a cross-collateral lien on my primary residence that I had to sign to in order to get more funds for this construction project.

I am asking them to release that lien on my primary residence and I will agree to the short-sale.

Does this sound like something they might go for????

Thanks for your help!

[Moe Bedard]

That is exactly what you should do. You must negotiate for the release of the property lien and I think they "may" do this. Nothing is for certain in this business, but you are already with your foot in the door. So, that is half the battle.

A CPA and a attorney may be your best bet on this.

[mom2three]

Moe:

Today I received an email from the bank and they have agreed to take the lien off my primary residence. They just want to know what Title Company I prefer to use. I am very happy about this.............but what is the real benefit to them???

A little update on the situation......Construction loan for $750K.....had to go back to the bank for more funds of $210K which they used the cross-collerateral on my primary residence. Now the home is only 80% complete with no more funds available. I knew at this point that the project was not going to be completed.

The bank has filed a NOD. Later the bank contacted me to see if I would be interested in a short-sale. I told them no...........just because like I mentioned before that they have made my life heXX! Anyway, I thought I am not going to help them........I will just let them foreclose.

Then I got the idea to agree to the short-sale if they would agree to take off the lien on my primary residence. Low and behold they have agreed and want to do it right away.

My question is.........why would they be willing to do this????????? And should I consult with an attorney first????

By the way I forgot to mention again that this is a private money bank with a pool of investors.

Thank you for your help!!!!!!!!!!!!!!!!!