Neighbor Planning to Strip Home Before Foreclosure - My Rights/Responsibilities? (rental, appliances)

[crankywithakeyboard]

I will check into this as well. We have an upside-down house in Houston and we live in an apartment in Carrollton (moved for husband's job). We have not missed a house payment yet so maybe this is an option for us.

Originally Posted by Debsi

You'd get a real estate agent that specializes in short sales, and you'd fill out the hardship/financial info packet with your bank's loss mitigation department (e.g. you can't afford this home and also pay rent in Texas where you've been transferred by your company). Some banks will be reluctant to approve a short sale where the payments are current, but I certainly wouldn't recommend you take a bank rep's or real estate agent's advice to default on a payment unless you've come to the point of last resort.

If you have an FHA loan, you do have to be 30 days late to get a short sale approval though.

Also, yes, the short sale will hurt your credit. Just not anywhere near as much as a foreclosure.. part of the big damage of a foreclosure is all those 30/60/90/120 day late credit dings.

This fico chart would seem to indicate otherwise, but I've seen several credit reports that include short sales within the last two years and the people are already back to 700. Again, these are people with no late payments.

Research looks at how mortgage delinquencies affect scores - Banking Analytics Blog

Whether your bank will allow you to do a short sale will depend on many factors such as whether your loan has mortgage insurance, who the loan's investor is, current property values in your area, and whether you have a bunch of money in the bank they think you should be using to pay down the payoff difference. It can't hurt to find out. If they say you'd have to give them all your savings and you'd rather stay put and try to wait until you have equity again, then at least you'll know for sure you're not moving to Texas.

[Big G]

Here's the latest - and it's a pretty big bombshell, at least to me.

The house WAS, in fact, foreclosed on and sold at auction in September. However, the family is STILL living there. WTF??? Why hasn't the auction winner (the bank holding the mortgage) sent the sheriff over to give them the boot yet? I don't get it.

[nsumner]

Sometimes the new owner makes a deal with the occupant to vacate the property, may be offer them a few bucks in order for them not to destroy the property further. He may have made a deal with them to rent it from him/her.

Naima

[Big G]

Originally Posted by nsumner

Sometimes the new owner makes a deal with the occupant to vacate the property, may be offer them a few bucks in order for them not to destroy the property further. He may have made a deal with them to rent it from him/her.

Naima

"Believe in good intentions" and all that, but I seriously doubt that's the case here, especially since the "new owner" is just the same bank that previously held the mortgage. I think they're just taking advantage of the fact that there's no physical person needing or wanting to take occupancy.

Besides, if they're in a "cash for keys" situation, it's an epic fail. Rather than stripping the house before foreclosure, they have apparently been stripping it AFTER foreclosure. Doesn't that move the activity from a legal grey area into just clear-cut criminal activity?

[Debsi]

It takes a little time to get the eviction orders through. If it was truly foreclosed on 9/6, the eviction should be very soon.

[tara14]

Wow, you people obviously don't realize some people experience hardship by way of losing job, health crisis in the family, death and certainly don't want to lose their homes, that is a terrible hardship especially with small children or family members who are ill, all you guys are worrying about is that people shouldn't take out appliances or should walk away willingly. WOw, what hard hearted people.

[skids929]

Originally Posted by tara14

Wow, you people obviously don't realize some people experience hardship by way of losing job, health crisis in the family, death and certainly don't want to lose their homes, that is a terrible hardship especially with small children or family members who are ill, all you guys are worrying about is that people shouldn't take out appliances or should walk away willingly. WOw, what hard hearted people.

Yes because the first thing one should do if they lose their job, or have a health crisis, or death or hardship of ANY sort, is to strip the house they are about to lose.

The only 'WOW' here is that anyone would defend this.

[MckinneyOwnr]

Tara, go back and read the first post. The homeowner was planning to trash the house, and gut everything. Removing lights, blinds, toilets... to the point of making the house unlivable.

Bad things can happen to good people. When that does happen, good people don't trash their dwelling as "revenge" against the bank and builders because they couldn't afford the payments.

[Big G]

Well, since this was brought back from the dead, might as well update:

The Deadbeat family finally hit the road in the dead of night last fall, shortly after getting an post-foreclosure eviction ruling against them. All appliances gone - even the ovens. At least they left the plumbing. They were also considerate enough to leave all the doors and windows wide open .

Anyway, the bank contracted with a local real estate firm to secure the place and clean it up for sale. They did a decent job and sold it (at a screaming deal, I'm sure) within only a few months to a family that are far better people than the original owners. So, good for them.

[Rakin]

Originally Posted by Big G

The Deadbeat family finally hit the road in the dead of night last fall, shortly after getting an post-foreclosure eviction ruling against them. All appliances gone - even the ovens. At least they left the plumbing. They were also considerate enough to leave all the doors and windows wide open . .

You have to have faith that what goes around, comes around. People like this somehow, somewhere, someday will pay for their actions.

Some people just can't understand why they can never get ahead or a break in life.