Received notice before foreclosure - help please

[kayhill232]

My husband and I have been struggling for a while to keep our mortgage current but have fallen 3 months behind, and, though I've been paying monthly for the past year, had a late paycheck at the end of February and were not able to pay the payment until March 5, and they have now taken the opportunity to send us a notice before foreclosure. A little back story is that my husband is a truck driver, and jobs for him do not always match up to what they promise. He, last October, finally found a job we believe is the answer to our problems, and I have also taken on a 2nd part-time job. However, at this time (winter), DH is only working 2-3 days a week until the snow is gone when he will go back to full time with lots of overtime (within the next 1-2 months). I know we can catch up then and then stay current after that, and I have written to the bank to offer this information and see if they will allow us this time to catch up. Now, my questions:

 

Is it best to communicate in writing so that I have record of any correspondence?

 

What if they refuse? I have done as much research as I can and found out we live in a judicial state and will have a 6 month redemption period. They apparently have the sheriff auction off the house at some point. Do we live here until the 6 month redemption period is up? Will we have people traipsing through our house and property trying to get things set up, appraisors, etc?

 

We actually were talking before this happened about fixing the house up a bit this summer and then possibly selling and moving. If they refuse, are we able to stay for a period of time to get ready to move - we would be gone before August anyhow if the house does go into foreclosure, but I would rather try to sell it on our own and try to keep the bad mark off of our credit scores. We bought the house for $80,000 and still owe $73,000 on it, so we still owe a lot on the house. Another thing I'm worried about is - what if they don't sell it for enough to pay off the $73,000? I found this statement on our state about deficiency judgements:

 

"Deficiencies limited by fair market value or appraised value, but allowed on land of more than 40 acres. Not allowed on residential property of four or fewer units on less 40 acres."

 

It sounds like they are not allowed on residential property, which I would assume we are, but then it also says:

 

"The lender has the right to sue the borrower for a deficiency judgment in the event the property sells at the auction for less than the loan amount due."

 

Any help or information you can offer would be greatly appreciated!

[kayhill232]

Does anybody know of any other foreclosure boards where I might get my answers? TIA

[RedHairedLady]

Does anybody know of any other foreclosure boards where I might get my answers? TIA

You could try Expertlaw.com. The people on there give good advice about various legal issues.

[doodlebugger]

The best advice I was ever given was to respond to the foreclosure proceeding notice. If you do not, they will automatically agree to foreclose and then you are fighting a different battle. Have you attempted to get a modification? What bank are you dealing with (because that makes a difference too)?

 

Have you talked to anyone at the bank about the situation to see what your options are?

[Em n EM]

The bank does not want to own your home, they would much rather do a mod or short sale. It costs them a lot of $$$ to foreclose! Do you qualify for a loan mod? Typically you have 6 months after the sheriff sale but every state is different. 1st call the bank ask for a loan modification specialist ask them their name and if its ok to record the conversation. be polite and tell them your story..Also look up a CDP certified realtor in your area, I would get it on the market while you are attempting to modify...