I don’t know if you have heard of it. It does not happen frequently. If you are facing foreclosure, this is something that you need to be aware of it. What am I talking about?
A Bank Walk Away
What is a Bank Walk Away? It is where right in the middle of the foreclosure process, the mortgage company puts a halt to the proceedings. Their representatives do not pursue it. Why would a mortgage company do this? It looks like they are doing this when they realize that they will get far less for the home than it will cost them to complete the foreclosure. Significant drops in value have occurred in certain neighborhoods, cities and certain areas of the country where there are an extremely high number of foreclosures. There are just so many homes which have been foreclosed in these areas that they have glutted the For Sale market. No one is buying them and the values drop to next to nothing.
Some people facing foreclosure who find out that their mortgage company has stopped the foreclosure process may think that that is great. They now get to stay in their home without making a mortgage payment. They are living there for free. All that they have to do is pay is their taxes and utilities. What a gift? Actually rather than a gift it can be
A Real Legal Nightmare
It can become a real legal nightmare because of the problems that can arise:
- At any time the foreclosure process can resume.
- The mortgage can be sold to another mortgage company who will try to pursue recovering what is owed.
- The city in which the person lives can throw them out for non-payment of real estate taxes.
- If the person wants to move, they cannot sell the home without paying off the mortgage on the home. The original mortgage company has a lien on the property.
- If there are any code violations or if the city orders repairs, the person is responsible for the cost of these.
Some people facing foreclosure have felt that there was no way that they could save their homes. They have moved out before the foreclosure was finalized. In those instances where their mortgage company stopped the process, they are now on the hook for all of this even though they no longer live there. Just picture that – They are legally responsible for real estate taxes and repairs for code violations even though they no longer live in the home.
What is The Correct Thing To Do?
If you are facing foreclosure, stay in your home until the process is resolved. If you are able to save your home from foreclosure, that will be a victory for you and your family. If you are not successful, then continue to live in your home until it is sold to someone else. Set up a bank account and put into it any money that you have available and which you would have paid on your mortgage. If you find that you have an amount equal to your old mortgage payment, then deposit that into the account. If you have less, put that in. Make these deposits monthly. If you mortgage company wants to resume the foreclosure process, you can show them that you are sincere about wanting to save your home. They may be willing to modify your mortgage and you may be able to save your home. If not and if you are forced to move, you will have money for the rental of an apartment or another home.
Seek assistance from a lawyer or an expert in loan modifications. In an instance like this where the mortgage company has stopped the foreclosure process, you do need expert legal advice.
Hopefully you will never be in this situation where your mortgage company stops the foreclosure process right in the middle. If you are facing foreclosure, remember that it is always best for you to control the process. The only way that you can really do that is by knowing as much as you can about the foreclosure process and the steps that can be taken to stop it. You might want to check out my EBook. It has quite a bit of information which I believe that you will find useful in helping you to understand the process and the steps you can take to save your home. You can get more information on it by clicking Stop Foreclosure.
Much Success,
Mark Elkins
