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Walking in San Diego, CA

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by SDSurfer, Oct 8, 2013.

  1. SDSurfer

    SDSurfer LoanSafe Member

    Hello all,

    My wife's property is in foreclosure and we just received the NOD last week.

    She hadn't paid since March 2013. We are no longer living there and are renting it out to a friend. We would love to keep it rented out for as long as possible and enjoy the extra income. The research I've done is that the bank must honor the lease of tenants even after they take ownership. I understand she can collect rent up until the sale date and then the bank will receive the rent. Can anyone confirm that?

    Also, what would be a good tactic to delay the foreclosure? She doesn't want to provide financials and we won't be throwing good money after bad. We haven't talked with the lender or services at all. The loan is one of the famous 80/20 all purchase money never refinanced (2 in house modifications) They are also different lenders.

    any help or insist will be greatly appreciated.

  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Hello SDSurfer,

    This is correct, due to the PTFA your tenant will be able to reside in the property until the lease expires. You can continue collecting rent until the Trustees Sale, and even then it may be postponed an additional month or two even if you make no attempt to delay the FC process. There are several ways to delay FC proceedings if you would like to continue collecting rent, however keep in mind that it can easily be another 90-120 days before a sale is scheduled.

    Tenants also must be permitted to stay in the residence until the end of their leases, with two exceptions:

    (1) When the property is sold after foreclosure to a purchaser who will occupy the property as a primary residence or (must purchases are made by investors who will not reside in the home or the property is transferred back to the bank), or (2) When there is no lease or the lease is terminable at will under state law.

    BTW how are you enjoying the new place?
  3. SDSurfer

    SDSurfer LoanSafe Member

    Thanks for the reply Evan. We are loving our new place! Feels good to have equity and a super low interest rate that won't change in the future.
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    That's great news, looks like you secured the purchase when interest rates were at ALL-TIME lows!

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