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Buy back my house after Foreclosure

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by billydee, Feb 12, 2011.

  1. billydee

    billydee LoanSafe Member

    Alright - Could I buy my house back at auction.

    My house is worth between $350k and 400k. The 1st is $396k and the 2nd is $47k. I have stopped paying my 2nd in hopes to negotiate. BUT, I started thinking. I filed chapter 7 and was discharged in Oct 2009. Did not reaffirm my mortgage. I could settle my 2nd(maybe), but why not let the house foreclose and go to auction. In Oct 2011, that will be 2 years from discharge and my credit will be in the High 600's or low 700's. I can get financed to buy back the property at $250-$350 and have 20% to put down. Does anyone see any flaws? The foreclosure will not affect my credit because the 2 mortgage companies cannot report any credit on me due to the bankruptcy discharge. Could there possibly be a public record of the foreclosure that might reduce my credit? Then again, I could close on the house prior to the public record posting. I mean, this puts me in the drivers seat. I can put a little effort into trying the mod just to extend some free rent.

    PLEASE LET ME KNOW IF THERE IS ANY FLAWS IN MY LOGIC!!!
  2. candle1

    candle1 LoanSafe Member

    i have a question for you. you file bk 7 and did ot re affirm your mortgage, but you still live in your house? i thought bk 7 will cause you to lose the house as well? i am in ch7, and the only reason i did it is to postpone trustee sale. am i missing soemthing as well?
  3. billydee

    billydee LoanSafe Member

    Candle - My chapter 7 was due to a business failure. I filed chapter 7 for the business but because I personally guaranteed debt, I was forced to file personal chapter 7. Paying my personal bills were never an issue. Currently, I have no trouble paying my bills, but because the damage has been done to my credit and the banks cannot report on my credit, I am trying the stategic default because I can be in a better financial position if I play me cards right.
  4. DesertMe

    DesertMe LoanSafe Member

    You should check with a real estate attorney in your state. Most states have rules that do not allow a former owner to bid on their own property. Most title companies require an "arms length" transaction and any title search will reveal you or a family member as related to the previous loan on the property. Any lender could figure this out and refuse to fund any new loan. And yes, the foreclosure is a matter of public record and easily located.
  5. RRva99

    RRva99 LoanSafe Member

    Legal issues aside, what makes you think the house would go for 250-350 when you say it's worth 350-400? If paying your personal bills has never been an issue, why are you trying to negotiate? Pay your bills and quit trying to get something for nothing.
  6. billydee

    billydee LoanSafe Member

    RRva99 - I am too far from my employment. I commute 3-5 hours a day. The reason I live where I live is because I moved to be close to my business that failed. After the failure, I had to seek employment and unfortunately it is far away. The house is valued at $350-400, but as you know, that is market value, not foreclosure value. Now, I ma in a position to choose to afford it or not. I am not trying to get something for nothing. I could stay......ah I do not need to explain to you. I ran the numbers, I am a CPA, I am doing what I am doing to gain a better financial position. If the bank works with me, great. If they don't, then they don't. I was asking a simple question, don't need a lecture about getting something for nothing.
  7. gettinout

    gettinout LoanSafe Member

    Here, here. This is the American way. Everybody's out there looking out for number 1 and doing whatever they can to improve their lot in life. Near as I can tell, the only difference between people who operate strictly within the rules and those who bend them as far as possible is money in the bank. One guess who's got it and who doesn't
  8. Minneapolis

    Minneapolis LoanSafe Member

    I am aware that arms length transactions are required for short sales. But is it also the case for auction sales?
  9. smalltownblues

    smalltownblues LoanSafe Member

    If I were the first I would foreclose and bid on it at $396k. Thats usually how it works where I live as the best deals are not found at the auction but the post foreclosure sale.
  10. judithoo5

    judithoo5 LoanSafe Member

    bellydee...the other day i was thinking that when my foreclosure is over and they put my house on the market...I may have a family to buy my house back..Here in new jersey , after foreclosure the house sits for about 4 months. Let me me know if it works for you..good luck...I bet a lot of people are doing this, but they are afraid to post it.....
  11. nowheretogo

    nowheretogo LoanSafe Member

    I asked the same question when I spoke with my Realtor. She said that you cannot buy back your home in a foreclosure sale. The Defaulted Banks do not allow it
  12. rubenmiami

    rubenmiami LoanSafe Member

    I need to hear from...you

    How did everything went? or how is the status of your buy back?.
    Here is my situation, 1st for 219,000 already refinanced with Chase after foreclosure started in 2009, making payments since then. Second with Chase also for 279.000 (including missing payments and late fees since 2008).
    Now the second mortgage was transferred to a collection company, long story short my attorney advised to do Chapter 7 (not qualifying for 13) and let the house go and get rid of all the debt. Market value between 240.000 to 290.000 (not necessary realistic since not many people will pay that for).
    My in law suggested to buy it back in the future, considering that I will start all over the foreclosure process when applying for chapter 7 and again start to default payments on the first.
    Question for you is that you did it backwards, first chapter 7 then foreclosure, does it makes a difference? back to the beginning, how did your situation went or is going?.
    Some other facts that might help, I've being living in the house for 10 years and with the modification got back to 32 years mortgage with the addition of 27,000 of a year of missing payments, putting the amount to finance higher to what I paid for 10 years back and...starting again a 32 year mortgage. Of course there is the second hanging.
    If you have a chance, answer...thanks.
    Would love to have a way to keep in the long run the house, my 10 years old was the reason I bought it and he grew up in this neighborhood.
    Thanks.:sad2:
  13. indeep1959

    indeep1959 LoanSafe Member

    When I went to a preforeclosure mediation meeting in Will county,Il court last summer, the lawyer for the lender after saying there's probably no way they will give me a mod (BAC), said to let the house go to FC and buy it back cheaper.
    He was serious actually, but said it with a smile. Got me thinking as well.

    You could have a family member (in law), no way of connecting them to you,(unless the bank hires an FBI agent?), either buy the house post foreclosure or even short sale it to them to wipe out both mortgages and buy it back down the road a helluva lot cheaper.

    I think this is the American way of doing things, these little "private" deals that no one talks about, are not illegal, but maybe "immoral" to some people. I say get over it, do what's best for you! What, you don't think these things are done everyday, all types of "secret" deals?
    Only prob is,I know of no one in the family who has any money or can buy a house right now! D'oh!
  14. rubenmiami

    rubenmiami LoanSafe Member

    what's more immoral...

    Thanks for your info, nice to find out that there is also a preforeclosure mediation, wasn't aware of that either, just beginning with the nightmare.
    What is funny and I read someone answer on this thread before becoming a member, was the immoral issue. I understand that point of view but, what it is more immoral? the fact of reducing your investment for life 50% while you still have to paid interest on the 100%? and for the rest of your life?. Oh, I'm sorry, banks these days do work under moral principles, I forgot that (being sarcastic).
    The worst part is that I seeing more immoral deals going around, like attorney's pushing homeowners to let the property go and then behind your back, having someone buying the property back at foreclosure prices, obviously, not every single case but the one or ones that are a heck of a deal.
    So, moral or immoral, no one will come to my door and offer any magic solution so, as to the most people, we are in our own trying to save or be able to keep what at one point was our dream property and...what it was the american dream, right?...today the american dream became an american nightmare and unfortunately each one of us is on his own defending against moral financial institutions, or people forgot that the government help them to reduce their debt not to have the country under recession, but, consumer didn't have that privilege.





  15. indeep1959

    indeep1959 LoanSafe Member

    Exactly my friend, do what's best for YOU, not what someone else considers "right". Like I said,as long as it's not illegal, not worth going to jail over it, of course.

    Not sure though if FL has mediation for you,I'm in Illinois,it's a law here in my county.
    I also had a condo in FL, they foreclosed on me last year and I was not offered any mediation remedies, just so you know.

    Good luck.
  16. bankwhipped

    bankwhipped LoanSafe Member

    Florida stopped mediation this year as they claim it it was not effective.
  17. indeep1959

    indeep1959 LoanSafe Member

    It's not effective here in Illinois either, at least wasn't for me. Total joke and waste of time. They said the best BAC would offer in a mod was 5% for 40 years, if you qualified.
  18. pre-meditated foreclosure

    pre-meditated foreclosure LoanSafe Member

    your not stealing if your at the auction with cash....
  19. atlmarty

    atlmarty LoanSafe Member

    Hello:
    I just joined this forum and read this thread. I thought I'd share a condensed version of my story. In 2008-09 my husband and I lost our consulting business due to the economy and could not find jobs for almost 16 months (for me) and 2 years for him. During that time we went through all our savings and 401(k) trying to stay afloat. In the end we filed chapter 7 and did a deed-in-lieu. We did not want to stay in a house we could not pay for and the bank was not willing to negotiate a thing. The house sat empty for 7 months and they put it up for auction. During that 7 months we both found jobs, saved every penny and worked to get our lives back. My husband went to the auction out of pure curiosity and ended up bidding and winning. He got if for $110K less than what we originally paid for it. If he had not been there bidding the next highest bidder probably would have gotten it for $60K less. However, because of the chap 7 and the deed-in-lieu we couldn't get financing and ended up getting a hard money loan at 14%. We figured we'd be stuck with the 14% for about a year but it was still worth it since we got our house back. We'd been told by the bank if we did a deed-in-lieu we could get financing again in 2 years. Well we just passed out 2 year mark and now we are told that FHA is not giving any approvals for "hardship circumstances" and that we will have to wait until the 3 year mark. I'm not happy about the 14% but my payments are still lower than what I was originally paying. So, bottom line - yes, we bought our house back at auction - completely unplanned and I don't recommend going through what we've been through to get an unplanned reduction in principal. I guess you could say we did our own loan modification/bailout unintentionally. And yes, by the time the closing came around the bank was aware we were the previous owners. I don't think they were happy about it but it was never an issue. If anyone knows of any "portfolio lenders" who loan to owner occupants I would very much appreciate the info. We've owned homes for over 20 years and never missed a payment until this episode.
  20. billydee

    billydee LoanSafe Member

    Did your deed in lieu show on your credit report? I have not let my house foreclose yet. I have not paid my 2nd in 16 months and have heard nothing from them.



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