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BillyBob11706

Foreclosure process questions

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My frinds wife passed away a while back. No life insurance and she was the one who had a job.

 

The last payment that was made was in July 2008. He told Wells Fargo that he wanted to do a hardship process since he wasn't able to make payments for a while.

 

In the mean time he turned his house into a hotel. He was renting out rooms etc. For the most part he was making money. Unfortunatly instead of using the money to pay the mortagage he was (as he says) just managing. Due to some of the low lifes that he rented to he had to evictt a few of them etc.

 

So here we are in Jan 2014. The bank sent him a package that said they were starting the foreclose process. 5 years ago I told him that since he only owed $57,000 or so on a home that was worth 200k they weren't going to do anything for a long time.

 

1. I told hime that since his house is still worth more then he owes they will foreclose. HOw fast will this process take? Will it still be the same legnth of time as

a regular forclosure?

 

2. He wants to do a loan modiforcation. If he hasn't filed taxes for the last 5 years because he had no income I told him that it probably won't be accepted.

Don't you need a steady job to do a modiforcation? I also said that by earning 30k a year and not reporting it is tax fraud.

 

 

My advice to him was to put his house up for sale before he loses it. The bank has made the property tax payments and his homeower insurance payments. His homeowners insurance went from approx $900 a year in 2008 to $2,400 in 2013 with no claims. I said that he is getting ripped off.

 

Any other ideas?

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I'm not sure I understand your question - this is a regular foreclosure. If it sells for more than he owes, he will get that money after the sale (all the bank can claim from the sales price is what they are owed. Any remaining money goes to the homeowner).

 

Yes, earning money and not filing taxes on it is fraud.

 

To do any type of modification, he will have to prove he has the means to make the new payment. If he is claiming he has no income, he has no means to make any payment and won't be eligible for a modification.

 

He's lived in a home for 5 years with no mortgage/rent payment. He needs to start making plans to have a rent payment after the foreclosure.

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