Please expand a bit more, relating to short sale ofers that you’ve had. Also, being beneficial, for a lender to foreclose, might imply collusion - where the home was initially over-appraised and the builder, lender and appraiser set this up from the beginning - as you might be suggesting is the reason you’re obtaining an attorney.
I’m sure you’ve probably researched this builder - through the state/county dept of licensing & local BBBs, as well as looking in public records for other homes the builder has sold - to see if any other buyer(s) are experiencing what you are.
I’m truly sorry that you have to go through this. If you were in my area, I’d ask you to let me help you.
FL foreclosure vs deed in lieu - Posted by Jennifer
Posted by Jennifer on January 18, 2008 at 08:03:22:
My basic question is this…which is better for my situation…Foreclosure or a deed in lieu in which i sign a $30,000 promissary note to my PMI company.
I have never heard of signing a promissory note with a PMI company. My bank already turned down an offer we had on the home which was $10,000 more than the appraisal. Iknow the senate passed the bill that keeps me from paying taxes on a foreclosure, so why should I sign away $30,000 that I don’t have to payback?
You may not have to do either there are mortgage companies and private companies out there that may be able to work out a loan modification for you with the bank if you want to keep the home but the payments are to hard to handle at this time. Did you have any luck with negotiating?
try to do the deed in lieu without signing a note. The actual lender should not care less about the PMI company, so will probably accept the deed in lieu.
Re: FL foreclosure vs deed in lieu - Posted by Jennifer
Posted by Jennifer on January 20, 2008 at 13:28:42:
River City…Obviously you know nothing of my situation. I am not a dead beat. My husband was transefered out of state and the house has not sold in over a year and a half. We have gone through our savings and cashed out our 401k’s until there is nothing left to liquidate. Maybe you should check the circumsatnces before opening your mouth. What do you expect people in our situation to do/ I had excellent credit and a great down payment and a 30 year fixed mortgage. I am not some idiot who spent too much and can no longer afford my home. I can not help that we had to move 900 miles away for my husband to keep a decent job. I find your remarks insulting. I was just trying to figure out which was better in my situation considering I can not afford to payback $30,000! I pray to God life circumstances never force you into a stressful situation, I can imagine with your attitude you’d never survive it!
Re: FL foreclosure vs deed in lieu - Posted by River City
Posted by River City on January 20, 2008 at 11:08:20:
From what I understand, you have to be insolvent to qualify under HR 3648. In states that have a state income tax, the state income tax may still apply. If you are in Florida, then this would not apply to you. The home also must be your primary residence.
Now, to your question. The PMI company insured your home for the lender in case you failed to make your payments as agreed, which you stepped up to the plate. It was probably of more benefit for them to purchase the home from the lender, rather than pay the lender off. If you do the “deed in lieu” you might be able to get the PMI company to report favorably to the credit bureau IF you make your payments as agreed, which you have already shown you will not do.
If you let the foreclosure progress, then your credit is basically ruined for a while, as it should be. And, the rest of us that pay our bills as agreed bail out you and all of the other deadbeats.
Re: Try Deed in Lieu w/out note - Posted by Jennifer
Posted by Jennifer on January 23, 2008 at 21:39:44:
I appreciate the advice…Unfortunately Wells Fargo has a hefty interest in my PMI company which is Radian. I think they actually own it. They refuse the deed in lieu without the promissory note. We have another offer on the house we will present them tomorrow, but it is $39,000 less then the one they refused so I am doubtful. But this is my last attempt to settle. If they screw this up, they can have the stupid house, I just wont be paying them to take it!
Hey Jennifer just wanted to let you know you are not alone. We are in the middle of foreclosure proceedings also because of a job situation. The builder took our huge downpayment used his mortgage co and we feel we were misled with the loan type and the rate. Buyer beware. We have had several short sale offers but the mortgage co. doesn’t acknowledge them. When I call I get people in a call center in India and they do not speak much English. I have had to get a lawyer myself to get anything done. I think somehow it is beneficial for them to foreclose. I was told by a lawyer that an FHA loan is backed by the government but somehow we ended up with a conv. unins. loan and I don’t even know what that is. I will never trust a mortgage co./builder again. We are not deadbeats we are all just chasing after the american dream - which I now believe is renting. Ha. God bless you.