Tuesday, April 12, 2011

what happens when we foreclose?

we finally heard from bank of america yesterday in regards to our year long battle to get accepted into the trial home modification program (due to me losing my job, hence the primary income at the time.

they said NO. even though our mortgage is currently 61% of our monthly gross income.

they also encouraged us to continue paying our mortgage on time and if we think that we might have problems doing that in the future, we should call a specific number.

go fuck yourselves b of a. no, seriously. GO.FUCK.YOURSELVES.

the whole point with TRYING to get our loan modified, was so that we wouldn't have to stop paying. was so that you would help us. even though you have it noted, that defaulting on our loan is immanent.

i don't know how you sleep at night, people who run and are in charge of this program, and at this point, i honestly don't give a shit. i'm passed caring and trying to make this work. i'm passed being beyond stressed out because we have to make this ridiculous house payment.

no more.

so now my question is... when i stop paying on the house and let it get foreclosed on.... what REALLY happens to my credit?

i want to know what the reality is if i let this happen? how will i be impacted? how screwed up will i be, if i default on my home loan, but stay current with everything else?

how long will things be screwed up, or is there some sort of understanding in regards to people whose credit is messed up solely due to losing their home? you know, since it's happened to so many people in the past few years?

i really want/need to know.. so if you know anyone who got foreclosed on, or if you walked away from your house- can you please tell me how it impacted your credit, your ability to get new things, your life?

and thanks. :)

11 comments:

Rhonda said...

Your credit will be totally shot. They say for 7 years, but other realtors have told me that you may be able to buy another home in 3-5 years.

Hugs :)

Judy said...

We walked away from our home 3(? I think) years ago. We moved out before they could come and evict us. Within the past couple months, the house was still in our names! It was listed as a loan modification during that time, and we had a hard time getting a car loan. It will be hard for you to get any sort of approval. The foreclosure itself will stay on your report for seven years.
In my opinion walking away from that house was the best thing for us. We're renting now, and we're in a nicer hose with lower rent that our mortgage was.
I hope that helps you somewhat.

ivoryhousemom said...

It will ruin your credit, stay on there for 7 years min. You'll still be responsible to pay back the loan, it doesn't really go away. Try to do a short sell instead. You'll save some credit in the long run.
Rent prices have increased too, because they know that people NEED to rent.

I'm VERY sorry you're in this mess, it stresses me out thinking about it and it's not even my home.

Kimberly said...

I'm going through something similar... due to a divorce. :(
We tried for a loan mod as well, to no avail. He stopped making our house payment in October when the baby was born, and I had a notice of default on my door the end of December.

My sister is a real estate agent and broker and has specialized training in foreclosure/short sales.... DO NOT FORECLOSE. Stop making payments, and then list the house for short sale, it will buy you time in the house, and will damage your credit MUCH LESS than a foreclosure. Be sure that your contract has a clause that keeps them from coming after you for deficiency judgment - the bank waives the right to come after the amount you owe above what the house sells for) Get in touch with a good agent who can guide you through the process (my sister was/is the agent for our mutual photographer friends here in Reno ;) as well). Let me know if you want her name and she can get you connected with a really good agent in your area... she's with Chase International and they have an incredible database of agents all over. Sorry this is happening to you too... it sucks. :(

Karen said...

I'm with everyone else....you need to avoid foreclosure with a Short Sale. You need a good agent or real estate lawyer in your area to guide you through the process. Good luck.

Brie said...

First I'm so sorry this is happening to you.

Try contacting hud.gov Some times they can provide you with information your loan company doesn't want to share with you. Hud may be able to answer a lot of your questions if not they surely will be able to direct you to someone with legal expertise in the matters at hand.

I use to sell real estate and when I had clients with situations such as yours I called up our local hud office for advice.

Check out all of your options before you throw your hands up.

Good Luck, Keep us posted.....we are rooting for you. ;-)

Anonymous said...

You should read this. I know wikipedia might not have all the facts but make sure the bank is willing to forgive all debt and make sure you review your credit report every six months to make sure that nothing is showing up as owed on the credit report or pending. Short sale might leave you with the same credit issues but will be less of a headache.

http://en.wikipedia.org/wiki/Short_sale_(real_estate)

Anonymous said...

There is noway that the government should be letting any bank foreclose on people that are hard workers and pay their bills. It's bullshit...Pisses me off their blind eye is what got folks in the mess we are seeing now, as it is. There's a special place for all that contributed to this crap! Stay strong Jenn...U are good..karma is a bitch. Jade

Ericka said...

my brother went thru the same thing, and ended up managing a short sale.

if you also have credit card debt, and they won't negotiate, be late. it is possible to go to 0 interest on your credit cards AFTER you're late. brother figured that out too.

shopkinsnest said...

we're in the same boat - trying to figure out if we should attempt a short sale or just let it go...I've been trying to get a modification from Chase for a year now, its totally ridiculous the hoops they make you jump through, and then they end up not helping you - its a waste of time. I'm going to try to short sale, but I'm prepared to walk if they continue their bullsh**!

Amy said...

Just listening to others in a similar situation has made me feel SO GOOD. My situation is a little more complicated as it involves an apartment building. We live in the first floor apartment and rent out 3 others. My mortgage is late by only one month because I've managed to rob Peter to pay Paul. That, unfortunately is not the complicated part. What is, is that my husband (whom I love dearly but he doesn't take care of the financial part of our lives) doesn't want to leave. I hate this building! Just today I had to call 911 because I heard fighting across the street and looked out to see several people fighting and one holding a gun that if it shifted a little to the left would have been pointed at our front window. I have small children who were playing in the living room. Call me crazy......but I grew up in a small town. This building is in a small city in Maine!!!! Really???? So, knowing this Short Sale/ Foreclosure stuff is even a POSSIBILITY is a weight lifted. I'm in tears. I really don't know how we're going to make it through another winter. Now to convince my husband......