foreclosure

Another thing the bank (or mortgage holder though I keep using bank) may do is just sell the debt to a collector and they will make their lives miserable. Calling all throughout the day, calling at night, calling work, calling people they work with, calling friends/neighbors/family at all times, threatening them with all kinds of crap. There are laws against many of those things but these collectors are popping up all over the place and it isn't so easy for the Feds to track them down and honestly, the Feds aren't really trying too hard to track them down anyways. A short sell without recourse (and get that in writing and NEVER lose it) is really the best option to avoid all that.

 

know where all these $8 billion bank write offs are coming from?

 

DaveW, they can place a lien against anything they own and get the Sheriff to start taking until it is paid. These people owe the bank this money and the bank does have the right to try to collect on it. The old commercial with MC Hammer and guys moving stuff out of his house really isn't as far off-base as you would think. The other thing is that if the bank/mortgage holder/collector ever gets hold of their bank account information, God help them. They will scarf every penny that comes in.

And again, just because some of that is illegal doesn't mean it isn't happening. There was an article on msn.com just the other day about how some elderly aren't getting their social security checks because as soon as they get deposited, it is getting scarfed. Technically, SS money is judgement/lien proof but a bank account is not.

 

DaveW, just because they are writing them off doesn't mean that they won't try to collect. Nor does it keep them from selling it to one of these harrassing collectors.

 

got a stack sitting in front of me right now. Know how much money will get recovered? about zero

 

They moved out of the house this past weekend. They are upset with me cause i didn't come up there and help them last week. I didn't know what the big rush was but it seems they wanted to get out before the sheriff came and kicked them out. They lied to me, they originally told me they weren't behind on their monthly payments but she finally told me last week that they were two months behind.

This is what i know about the situation. They are upside down on their house. The original monthly payments were $900. They have gotten 4 loans against the house and the monthly payment has been $2400 a month for the last two years.

They told me that they found a house to rent for $1400 a month. This would save them a $1000 a month. Said they needed to bite the bullet now or they wouldn't be able to send my little brother to college. Alright? so they are using my little brother as an escape goat in reality, they needed to get the hell out of dodge cause they were already 2 months behind and they needed to get on the rental lease before foreclosure proceedings started and messed up their credit.

Before i knew they were 2 months behind, i was thinking it would've been smarter for my mom's husband to get an extra part time job and try to sell the house.
What's really bad is that if they had kept with the original loan, the house would of been paid for this year.

 

That may be on the stack you are looking at but listen to a show like Dave Ramsey or Clark Howard and hear people in foreclosure calling them to tell them what is happening. They have collectors threatening them with jail and all sorts of crap. Furthermore, if the bank can't collect on them, they will sell it to another collector at some point. It won't necessarily be tomorrow or even next year but it will get sold for pennies on a dollar to a collector who will hound the mess out of them.

 

i'm not sure, but i think this is already happening. See, they don't tell me everything. I had to send them some money for moving expenses last week cause they were giving me some story about not being able to get in there checking account.

 

jb, they are absolutely in a tough spot. Even a short sell will be very tough as they will have to get all 3 secondary loans to agree to release probably by signing an agreement to pay back the remaining amount to them. Man, I'd still try to sell it and do what they can but they may end up having to walk away. Just have them prepared for what will come. Unless all 4 of their mortgage holders are idiots or terribly unorganized, they will eventually get chased. It may take a couple of years so if your family was really wise, they would pile up some cash and just offer these people settlements as they start calling them.

 

They need to close the account then because this will continue to happen as long as they owe money and money continues to go into that account.