How to Get Super Duped While Your House Is Being Repossessed
You’ve seen that bandit sign at the intersection that says STOP FORECLOSURE. Call Mr. Miracle at 555 BIG SCAM. Here is an opportunity. Mr. Miracle, who is a lot like PT Barnum and Elmer Gantry rolled into one, suggests that he transfer his house to him subject to the mortgage. What does that mean? In Florida, it means that he has signed over the deed to his house to Mr. Milagro. He is the owner. It’s from him. You have to move out or pay her rent. He owns the house but you owe the mortgage. You owe the mortgage. You signed a promissory note when you got the mortgage. You personally promised to return the money. If you don’t, the bank will sue you for lack of knowledge. What is a deficiency judgment? It’s when the bank sues him and gets a personal judgment against him for the difference between how much he owes and how much the house sold at a public foreclosure auction on the courthouse steps when Mr. Miracle didn’t catch up and perform payments like him. he said he would.
Oh good. You can always file bankruptcy unless you have already done so and the bank waits until you have done so to sue you. Do these sentences not expire? Yes they do in twenty years. In Florida the creditor can take your property. take his bank account, garnish his wages, aggravate him for a long time
Wouldn’t it make more sense to get a little more information before turning your house over to Mr. Miracle?
Here’s another idea. Let’s not do anything! Yeah, don’t do anything. Just sit back and wait for the foreclosure auction. It’s not your fault you’re in this situation anyway. It’s the bank’s fault. It’s the real estate agent’s fault. It’s the government’s fault. Doing nothing is little better than turning your house over to Mr. Miracle. Ten months for the foreclosure process to take place. His house will be for sale on the courthouse steps. It will sell for pennies on the dollar or the bank will buy it. You will probably be sued for deficiency in judgment. His problems have just begun. .
Write it to Mr. Miracle. That is not a good plan. Do nothing. That’s not much better. What can you do?
Here’s a novel idea. Catch up on missed payments and keep making them. I am amazed at the number of people who are being repossessed and who are not working. Go to work. Earn some money. Do something below your dignity. Sell something. Sell everything you have. Sell your car. Sell your jet ski. Sell your furniture. Sell your jewelry. Sell your motorcycle. If any of this has payments, sell it first. Collect the money and make the payments. Unless you committed fraud to obtain this mortgage, you could afford this house when you bought it. Make the payments. Don’t take this lying down. If you committed mortgage fraud to get this loan, that’s an even better reason to make the payments. After a foreclosure, a fraud investigation could really make your life miserable. Google that,
Many people who come to my real estate school are there to learn how to earn money so they can make the payments on their house that is being foreclosed on. Real Estate, Insurance, Legal Prepaid, Avon, Mary Kay, Pampered Chef and many other products are sold on commission only. Anyone who wants to make money can learn how to make money selling one of these products. It’s easy to get hired because the recruiter can’t tell if you’re going to work. Almost all products that are sold on commission can only be sold by anyone who works hard. Get that opportunity and earn some money. Make your payments. Most of these products, including real estate, can be sold part-time. If you currently have a job but need more money, find that opportunity. Make your payments.
Call your mortgage company or bank. talk to them. Ask them what you can do. They might surprise you. I’ve heard some amazing stories.
Here’s a plan that I’m sure will work. Sell your house. If you can’t afford it, sell it. What could be simpler than that. Find a buyer. Get a new mortgage, pay off your mortgage. Your problem is solved. What if your house is worth three hundred thousand and you owe four hundred on your mortgage?
Banks are in business to make money. If your house is foreclosed on, it will probably sell at public auction on the courthouse steps for $200,000, or the bank will buy it on the courthouse steps. They will then list you with a real estate agent and he will make a commission. They will also pay the normal closing costs of the transaction. They will also have all normal home ownership expenses; taxes, HOA due, insurance, maintenance, etc. They don’t want to do that. However, if it’s the most cost-effective option available to them, they’ll do it.
Another option for you is called loss mitigation, colloquially called a “short sale.” The way this works is that you find a buyer, the best way to do that is to list with a good real estate agent. The real estate agent finds a buyer at a suitable price. Participate in that decision. After all expenses of the sale have been paid, the bank accepts the proceeds of that sale and repays the loan.
Have a lawyer represent you and make sure the bank waives its right to a deficiency judgment.
Please understand that you are in a very bad place. It’s going to take a lot of discomfort to get out. Be good to yourself. Be good to your spouse. Do not sign any paper you do not understand. Legal advice is cheap compared to what you can do without it. Think. These are big important decisions.
