Anyone been through foreclosure in IN? (Avon: short sale, real estate, renting)

[indyjoan]

I figured I would ask here since I don't know anyone personally who has been through foreclosure. I have been too ashamed to ask anyone I know for advice.
What happens after the summons from the court is received? In other words, how long from the time you get the notice that you are being sued (forced into foreclosure) by the mortgage company until the day arrives when you absolutely have to be out of your home?
I'm researching the best solution for my personal situation and am torn because we live a "vinyl village" in a suburb city west of Indy and our home was refinanced for more than what we could sell it for now.
Considering cutting our losses at this point and renting a home in the area. We have several reasons for staying in the area. Two being the kids have grown up here and my Mother lives here and is in poor health.
I don't need anyone to tell me to talk to a lawyer. If I could afford an attorney's advice one could say I could then also afford to make some sort of house payment.
Thanks in advance for anyone's help.

[sweetana3]

my brother was in the same situation decades ago. He stayed and paid his mortgage and eventually the value made it up to where the financing was. however, if you cannot pay the debt, cannot rearrange your debt, not much choice.

Each situation is dependent on the organizations involved. Some push harder and some delay for their own reasons.

[JulieL]

First of all, have you tried to work something out with your mortgage company? Secondly, you can do a short sale. A short sale is trying to sell the property before it makes it totally through the foreclosure process. Talk to an real estate agent in your area. They can help you.

Good Luck,
Julie

[Michelle Morris]

In your situation, your best option would be to try a "workout" plan with your Lender. You need to call them right away to try to get something figured out before it gets too far that they are unwilling to help. I just attented a training class on preforclosures, and it was eye opening. Sometimes they are willing to help by letting you pay interest only payments, or doing a "forebearance".

If that won't work well enough for you to keep the home, you will need to try a short sale to get out without being foreclosed on. It is still not great on your credit, but it is better than a foreclosure! Talk to a Realtor in your area (I work in Avon) about your options. They can get your house listed, and speak with the bank to try to get a short sale going.

With a short sale, the bank accepts a smaller amount than what you actually owe on the property, ie. the bank is shorted. You will have to work closely with your Realtor and your Bank to get this going, but it can be done. It is not for everyone, you have to prove that you are in a hardship situation, not just that you want to move.

[indyjoan]

Thank you all for your replies.
We have been behind more than once since 2002, when my husband lost his airline job. It did not get to the extent that it is now, but we were in a default payment arrangement plan period when we stopped being able to pay the mortgage the past five months.
I do have the ability to possibly get the payments current due to a family loan (rather a "gift") that was offered to us today after I made the initial post here. This is probably minus the current late and legal fees.
There have been letters from realtors arriving in our mail in the past few days offering help with a short sale. Of course the first letter arrived before we even received the summons. I figured someone must have known something that we didn't yet know.
So, we will offer the mortgage company what we know we owe and go from there. My fear is that they will say no, consider us a risk, and continue with the mitigation process. Although, in my online reading the past few days I found that the average cost to a bank when a home forecloses is $58,000.
I am not so worried that we won't be able to keep up with the payments, once they are brought current. However, it is always in the back of my mind that the mortgage company will just want us out of here, and how long will it take, and where in the heck do we go......you know?
Thanks again for the replies. Very much appreciated.
I will update.

[diggitydot]

It's my understanding that most lenders want to avoid foreclosure at all costs, particularly now that housing prices are plummeting. (I have a couple friends in the banking industry.) Call your bank, tell them you're able to come current on the note and see if they'll work with you. They want your money, not your home. I'd be very surprised if they didn't figure out a way to stop the legal proceedings.

Good luck!

[Michelle Morris]

I agree with the previous post, if you are able to come current, your bank would much rather have your money than your house. Best of luck to you!