When A House Sells While In Foreclosure..

[tmd12]

I am not sure how to phrase this. The house is currently in foreclosure. The loan is being handled by a lawyer group.

 

My exhusband refuses to make court ordered payments on the mortgage. It is impossible for me to bring the mortgage current.

 

The house is on the market and hopefully it will sell by the end of the summer.

 

 

My question is this - when the house sells, what does the mortgage company take?

 

Do they only take the balance of the loan, or will they also require the past due payments ( 20k+)

 

So let's say the house sells, will I owe the balance due on the loan or the balance plus all the late payments?

 

I hope this makes some sense, I cannot find an answer through searching.

 

Thanks!

[breeze]

Hate to say it, but you need to have the court enforce their order. If you only knew - this kind of thing happens all the time. The judge knows it's going to happen. The lawyers know it's going to happen.

[tiggerlgh]

They will take the total due which includes the balance, and and fees (foreclosure, past due etc)

[jmw1212]

You need to consult an attorney asap. It's possible you could be left responsible for the difference. He needs to be held accountable as well. You may be better off filing bankruptcy, but you need to speak to an attorney that can advise you best on your particular situation. Go for a free console. ASAP. Go for several if you can. We had three before we decided who could best help us. After advice by others to go to someone else. Best of luck to you:)

[tmd12]

So let's say this is the scenario -

 

 

 

House is on market for 300k

 

 

The mortgage balance is 200k

 

 

House sells for 275k, profit is 75k

 

 

Exhusband owes 30k in back payments

 

 

 

So what would I get out of this? 75k or 45k?

 

 

 

Or do I pay the 200k plus fines and late fees?

 

 

Me exhusband is turning out to be a deadbeat. He refuses to pay the mortgage, pendite lite support and has cashed out his entire IRA (half of which is mine) and called out of work for 4 months as 'sick' all to avoid being arrested and giving me any money.

 

I don't want to file bankruptcy, but if the house is lost to foreclosure, I will have to. This is why I am worried about what I have to pay to the mortgage people when the house sells. I can have all the court orders and bench warrants in the world, but if he refuses to pay, there is nothing I can do.

 

 

Thanks for your help.

[tiggerlgh]

So let's say this is the scenario -

 

 

 

House is on market for 300k

 

 

The mortgage balance is 200k

 

 

House sells for 275k, profit is 75k

 

 

Exhusband owes 30k in back payments

 

 

 

So what would I get out of this? 75k or 45k?

 

 

 

Or do I pay the 200k plus fines and late fees?

 

 

Me exhusband is turning out to be a deadbeat. He refuses to pay the mortgage, pendite lite support and has cashed out his entire IRA (half of which is mine) and called out of work for 4 months as 'sick' all to avoid being arrested and giving me any money.

 

I don't want to file bankruptcy, but if the house is lost to foreclosure, I will have to. This is why I am worried about what I have to pay to the mortgage people when the house sells. I can have all the court orders and bench warrants in the world, but if he refuses to pay, there is nothing I can do.

 

 

Thanks for your help.

I am sorry you are going through this.

 

Not an easy answer as I assume the back payments are included in the current amount due. SO the Total Unpaid Balance is what will be taken out. So if the bank says to pay off the mortgage today it would be $200k then you would get $75.

 

 

If I were you I would request a pay-off quote from the bank to determine the total amount owed on the loan.

 

Good Luck!

[tmd12]

Thanks for the reply. I was thinking that they would take the 12-15 months of interest as well, which is the majority of the monthly payment. I know I need to consult a real estate lawyer, but the list of things I need to do due to the ex is getting longer and longer.

[tiggerlgh]

Yeah they will take the interest and all fees. Still better than a foreclosure if that can be avoided

[SportsNut]

Me exhusband is turning out to be a deadbeat. He refuses to pay the mortgage, pendite lite support and has cashed out his entire IRA (half of which is mine)

 

I don't want to file bankruptcy, but if the house is lost to foreclosure, I will have to.

 

From some of the details that you list, ala 50% of the IRA was yours, it sounds like you received some very poor representation on the legal side during your Divorce. The IRA should have been seperated into two different accts at the time of the divorce, this is purely slipshot work on the part of an Atty not to require this for your protection. Agast!!! This may be an actionable event against you Atty for malpractice.

 

As to Bk filing, there are worse things that can happen, and Bk has happened to a lot of good people of the past decade or so. I wouldn't let that be an issue now since you have so many other things to balance now. What seems like the best option is to be in touch with the lender about a short sale and try to set that up, if possible. This would mean that the lender would get all the proceeds from the sale, but if there isn't enough from the sale to cover everything, that they would accept the amount of the sale net and call it even; basically. It should be stipulated up front that they would do so without a deficiency against you, meaning you would owe them nothing more.

 

Sure, that would be a fat pill to swallow but better than still having a debt from the house hanging over your head. Sorry that things have turned out this way; hard to understand why bad things do happen to good people. Chin up.

Edited May 3, 2012 by SportsNut

[tmd12]

Due to my ex not showing up at court, postponing court dates and the slowness of the Superior Court in this state, the divorce is still not final, so I cannot fault my lawyer about the IRA. My ex knew half was mine, but is taking very bad advice from his girlfriend. Even his lawyer has bashed him in open court, asking how he can remove himself as the lawyer on the case.

 

I know bankruptcy is an option, but I would like to avoid that route if possible. I just want to sell this house pay my debts and move on with my life.

 

Thanks everyone for the replies and advice.

[SportsNut]

Due to my ex not showing up at court, postponing court dates and the slowness of the Superior Court in this state, the divorce is still not final, so I cannot fault my lawyer about the IRA. My ex knew half was mine, but is taking very bad advice from his girlfriend. Even his lawyer has bashed him in open court, asking how he can remove himself as the lawyer on the case.

 

I know bankruptcy is an option, but I would like to avoid that route if possible. I just want to sell this house pay my debts and move on with my life.

 

Thanks everyone for the replies and advice.

 

One would think that until there is a settlement of assets that either side would be barred from making any large transactional moves of funds, by order of the court. Apparently this wasn't stipulated or he ignored the order of the court? Either way, you have been gravely harmed here. If there wasn't an order to freeze assets there should have been, based on his apparent tendancies. If there was an order by the court then he should be locked up until he can produce the assets; simple as that.

[tmd12]

I think that nothing was done regarding the IRA because no one thought he would be so salamanderic to cash out over 100k and pay the penalty.

 

He has 3 warrants out for his arrest, but moved and did not inform anyone of his new address, so the sheriff cannot locate him.

 

My lawyer is working on freezing his work 401k and pension as well as his bank accounts if we can find his bank.

[by2]

I think that nothing was done regarding the IRA because no one thought he would be so salamanderic to cash out over 100k and pay the penalty.

 

He has 3 warrants out for his arrest, but moved and did not inform anyone of his new address, so the sheriff cannot locate him.

 

My lawyer is working on freezing his work 401k and pension as well as his bank accounts if we can find his bank.

 

Check out this bill, not sure if it applies to your situation:

 

http://www.irs.gov/newsroom/article/0,,id=174034,00.html