Mortgage Town » home collected loan

how long after bank of america refers the home loan to an attorneys office for collections?

admin — Tue, 24 Jan 2012 11:23:38 +0000

my bank is still calling but i received the letter of intent to foreclose in may now i just got a letter from a law office stating they are attempting to collect the balance. whats the next step? and about how long do i have before we have to move out?

Each lender have their own procedures as to when to file a foreclosure against a person that is behind in their mortgage payments. Some file foreclosure procedures immediately after one payment is missed, some as long as 3-9 months or more after missing your first monthly payment.

There are two types of foreclosures normally used in the United States

Non-Judicial Foreclosure

Most lenders use the non-judicial foreclosure procedure. No courts or lawyers are involved.

Under this procedure normally the lender has the right to sell the property after completing the foreclosure procedure. The lender, under this procedure can not normally sue for a judgment after the sale. You do not have the right to reclaim the house under any circumstance.

Under a non-judicial foreclosure and the lender has decided to foreclose on you they issue a "Notice of Default/Foreclosure" this document is recorded at the county recorders office where the property is located.

You will receive a copy of this notice in the mail as well as one will be delivered to your front door.

At this point you now have 90 days to bring the mortgage current, refinance the mortgage or do what ever you want to do to keep your property. Your lender might entertain the idea of refinancing your mortgage for you at this stage.

Once the 90 day period is over the lender then decides to record a "Notice of Sale" at the county recorders office. You will receive a copy in the mail as well as someone will deliver one to your front door. This notice will have a sale date and place of sale.

Once this document has been recorded you now have 20 days in which to refinance or cure your foreclosure. Most lenders will not entertain the idea of refinancing their own Loan once this document has been issued. Some might, but most will not. At this point the lender is interested in you paying the Mortgage off or bringing it current.

At the sale if the property is sold to someone, they have to get the property recorded in their name so there is lots of legal work to be done before they officially own the property.

This new owner will contact you when all the legal documents are signed and between the two of you select a time for you to move. You might be required to pay rent for the time you stay there but this is between you and the new buyer.

If the property does not sell then the lender has to get a few legal matters taken care of so they have to wait until the legal matters are completed. This normally take 5-7 business days or less.

If this happens once all the legal matters are taken care of the lender normally hires a real estate agency to take care of their real estate sales.

An agent from the agency will contact you about the date and time of your departure. In some instances they will offer you a sum of cash for you to move.

If you are not required to go to court and has not received documents from a court stating that you must appear. This is probably the procedure being used by your lender.

Judicial Foreclosure

If the lender decide to use the judicial foreclosure procedure you will be issued a summons to appear in court. The court will set the time and date of appearance as well as when you will have to vacate the property.

If the lender use the judicial foreclosure procedure they are allowed by law to file a deficiency judgment against you.

Most lenders, though the law allow them to file for a deficiency judgment, do not do so. they would just rather sell the property, write any loss off and move on without other legal problems that might cost them money and then would have to collect on the judgment if they won.

On the other hand the law also allow you the right to reclaim your house after the foreclosure procedure has been completed in some instances any where from three months and in some states up to a year.

If you received a document stating that you have to appear in court and a date for you appearance has been set, your lender is probably using this procedure.

This method of foreclosure is used only by a few lenders where both procedures are allowed.

Under either procedure if the bank can not reclaim the entire loan amount from the sale of the property they claim they have a loss. Since this is a loss to them someone had to have a gain. You are the one considered having the gain, therefore the lender would then send the current owner a 1099 indicating the amount of gain they had.

Upon receipt of the 1099 they must file this gain with their year end taxes as to the amount of gain you have.

Your loan docs you signed would indicate the type foreclosure procedure your lender would use. Check them carefully.

For tax and legal matters you should always consult with your tax consultant and attorney.

I hope this has been of some use to you, good luck.

"FIGHT ON"

If I get my second home foreclosed can the loan co. come after my first home or collect the difference of what?

admin — Fri, 13 Jan 2012 02:16:45 +0000

I refinanced my 2nd home and now owe 112k it is only worth 60k when they foreclose will I have to pay the difference? can they attach my primary residence?

Yes, if you default on the Loan, then the lender will be able to both foreclose on the property and try to collect any money you still owe, known as the deficiency balance. That means that the lender will pursue legal actions and obtain a court judgment against you, which can lead to wage garnishments, bank levies, and liens on your personal property, including a lien (or attachment) on your first home.

The Bills.com article about second homes and foreclosure http://www.bills.com/second-home-in-foreclosure/ explains in more detail about anti-deficiency laws. Typically, second Home Loans are not included, but I recommend that you receive a legal opinion from a local lawyer.

In addition, I recommend that you consider these two points:
1. Seek an alternative to foreclosure, including a short sale, with a negotiated payment plan for the deficiency balance. See the Bills.com article www.bills.com/a-deed-in-lieu-of-foreclosure-vs-a-short-sale/ for more information.
2. Learn about debt relief programs. The deficiency balance will be an unsecured debt. This can be dealt with in a debt settlement program or bankruptcy. Learn about the different alternatives in Bills.com article about www.bills.com/debt-relief.

How much can i borrow for a home loan?

admin — Thu, 24 Nov 2011 04:58:49 +0000

I am 21 years old. Have worked part-time for two years at a job making 600 a month. I have one credit card that i pay off each month. I also collect $200 a month rental income from a rental house i own a part of. I have 10,000 in the bank as of now. How much money could i borrow to buy a house?

About a $14,000 Mortgage.
A bit on the low side, since utilities will take away a large chunk of your salary.
Rental income cannot be considered as income for a mortgage

Note: Banks do not make mortgages for amounts smaller than $50,000

How do home loans work?

admin — Thu, 20 Oct 2011 00:48:07 +0000

when my sister and myself’s parents died we each inheirited a home. these home were free and clear. there was also no will or trust. after going through probate, atty. fees, back bills etc., we each ended up oweing 80k. my sister was appointed administrator and I figured she was handling things. she wasn’t. then I did something stupid (not with this case) and caught a prison term. we each had atty’s.. while I was in L.A. co. jail waiting to go to prison my atty. would visit me after he went to court concernig the probate case and tell me what was going on. I believe he was fair with me. my sister’s atty. is another story. she saw a sister and brother (with the brother being disconnected by being locked up. my fault) that didn’t know anything about probate law. she collected a lot in fees. which I probably helped pay. her fees kept climbing until my atty. brought it up in court one time. the judge couldn’t believe it. she didn’t receive any more money after that. she did very well for herself, believe that! with all that said back to my original question. I was looking at my loan papers the other day. it looks like to me that 35k (borrowed on each home) was borrowed and the interest is 45k which adds up to the original 80k I talked about earlier. this seems high to me. if it is what are my options? I know I was stupid for going to prison so please keep the scolding down if possible. thanks.

Your Truth in Lending (TIL) statement seems about right. What you are looking at is the interest spread out overt he life of the Mortgage Loan. Normally the life of the mortgage loan is for 30 years. This would pretty much be the correct figure, even though it look like a lot of money.

This interest figure is correct if you pay the mortgage loan off in the terms indicted on the mortgage note.

Paying off the mortgage earlier would reduce the amount of interest you would pay.

Probate attorneys could be a pain in the lower regions of your body, especially if you do not know what to do or is happening.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

How do home loans work?

admin — Sun, 09 Oct 2011 01:44:54 +0000

when my sister and myself’s parents died we each inheirited a home. these home were free and clear. there was also no will or trust. after going through probate, atty. fees, back bills etc., we each ended up oweing 80k. my sister was appointed administrator and I figured she was handling things. she wasn’t. then I did something stupid (not with this case) and caught a prison term. we each had atty’s.. while I was in L.A. co. jail waiting to go to prison my atty. would visit me after he went to court concernig the probate case and tell me what was going on. I believe he was fair with me. my sister’s atty. is another story. she saw a sister and brother (with the brother being disconnected by being locked up. my fault) that didn’t know anything about probate law. she collected a lot in fees. which I probably helped pay. her fees kept climbing until my atty. brought it up in court one time. the judge couldn’t believe it. she didn’t receive any more money after that. she did very well for herself, believe that! with all that said back to my original question. I was looking at my Loan papers the other day. it looks like to me that 35k (borrowed on each home) was borrowed and the interest is 45k which adds up to the original 80k I talked about earlier. this seems high to me. if it is what are my options? I know I was stupid for going to prison so please keep the scolding down if possible. thanks.

Your Truth in Lending (TIL) statement seems about right. What you are looking at is the interest spread out overt he life of the mortgage loan. Normally the life of the mortgage loan is for 30 years. This would pretty much be the correct figure, even though it look like a lot of money.

This interest figure is correct if you pay the mortgage loan off in the terms indicted on the Mortgage note.

Paying off the mortgage earlier would reduce the amount of interest you would pay.

Probate attorneys could be a pain in the lower regions of your body, especially if you do not know what to do or is happening.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

Income tax returns – Loan for house under construction?

admin — Sat, 10 Sep 2011 04:30:34 +0000

I have availed of a Home Loan on Aug 2010 on an under construction house . As per the term of the loan scheme, though bank has been disbursing partly for the home which is under construction, bank has started full EMI collection on the whole amount of Loan sanctioned from the first day of starting the disbursement (part disbursement). The house is supposed to be completed within next 1 year.

Bank has also issued a certificate stating the principal and the interest collected from me for the current FY.

Total Loan : 25L
Disbursement during 2010-11 : 12L
Principal recovery : 1,42,000
Interest debited : 69,000

Can I avail tax benefit on the interest and principal. Or is it possible only after construction is complete. As per the certificate , I am paying EMI (not pre-EMI).

The house is in a different state and would not be occupied by me. Which form should I fill ITR 1 or 2?

Thanks in advance

You can avail the benefit of intrest only after possession of the flat. Intereste paid during the construction period can be claimed in 5 emi in subsequent years. there is no benefit for principle payment.

Tulsi Gupta

House Session 2011-07-12 (15:06:11-16:09:20)

admin — Sat, 20 Aug 2011 01:11:52 +0000

Resume consideration of H.R. 2354–Energy and Water Development and Related Agencies Appropriations Act, 2012.

Duration : 1:3:10

Technorati Tags: C-SPAN

NCRC House Testimony Wrapup

admin — Wed, 17 Aug 2011 23:42:40 +0000

NCRC President John Taylor provides a wrapup of his testimony at the House Financial Services Subcommittee. The hearing was on “Rooting Out Discrimination in Mortgage Lending: Using HMDA as a Tool for Fair Lending Enforcement.” HMDA stands for Home Mortgage Disclosure Act which requires collection and reporting of Mortgage Related Data by some lenders. While HMDA is a useful tool in analyzing lending trends, NCRC believes that the data collected should be expanded in order to provide more publicly accessible information to improve analysis of progress and problems in lending patterns. Also featured is Subcommittee Chair, Melvin L. Watt (D-NC, 12th District) interviewed by NCRC’s VP of Legislative and Regulatory Affairs, Sylvia Lake.

Duration : 0:3:56

Technorati Tags: congress, discrimination, fairlending, finance, hmda, johntaylor, melvinwatt, melwatt, Mortgage, ncrc, regulators, sylvialake

NCRC House Testimony Wrapup

admin — Tue, 16 Aug 2011 22:45:48 +0000

Duration : 0:3:56

NCRC House Testimony Wrapup

admin — Wed, 10 Aug 2011 04:48:14 +0000

Duration : 0:3:56