NLIC.org

Julio Said:

What happens when the bank forecloses on your home?

We Answered:

A foreclosure means the bank is going to sell your home to get back the money you owe in non payment of your mortgage. I do hope you have been to the bank to discuss your situation to see if anything can be done to prevent this. Mortgage insurance is usually for the benefit of the lending institution. If they sell your home for less than is owed, the Mortgage insurance company will pay the balance. Normally it is the Mortgage Insurance Company that forces lending institutions to foreclose, to reduce the likelihood of there having to pay out any shortfalls. The Bank cannot sell your home for less than the prevailing market value and any surplus (if any) from the sale is given to you. However, once again, I do urge you to talk to the bank and see if anything can be done. I don't know about the other aspects of your question, but surely there is some community organisation that can advise you ? All the best :)

Shirley Said:

Why should I agree to this...foreclosure question.?

We Answered:

It's hard to answer this without knowing how far along you are in the foreclosure process. My suggestion is that you contact an attorney and get at least the free consultation. I DO NOT recommend bankruptcy. I went that route and it was basically a waste of 4,000 dollars. Turns out the same bank who had a gun to our head (Wachovia) was the same bunch of blood suckers who served to "administer" the bankruptcy Chapter 13 payments.

If you have a house in Florida that isn't selling (not unusual these days), and you already have secured housing for which you don't depend on the money from the sale of the house, you may actually be better off healthwise (stress) to let it go. The attorney can tell you for sure, but I think the banks are REQUIRED to try for market value on homes that are foreclosed. At any rate, you'll have one less bit of "stuff" to worry about, and after all, a house really is just "stuff", as Dave Ramsey says. I've been where you are, so feel free to email me if you want to talk more.

Gail Said:

I lost my home to foreclosure about a 7 months ago and today I had a private mortgage Investigator call me?

We Answered:

It sounds like they might be preparing to sue you for mortgage fraud to me. Did you steal a large amount?

He is not revealing his client, but my guess they are going to try to say it was investment property and you fraudulently obtained the loan claiming it as a residence.

That is my educated guess anyway.

Henry Said:

Will there be any sort of obligation left for me after foreclosure?

We Answered:

Aaaaaggghhh! WHAT ARE YOU DOING? Do NOT allow yourself to be dragged into foreclosure. It will completely destroy your credit - taking YEARS to recover from. True, you will be kicked out of your home. And - NO - you will not have any further financial obligations TIED TO THE PROPERTY. This doesn't include other debts you may have (i.e. - credit cards, car payments, etc.) because they are not being paid off throught the foreclosure - only your current mortgage/back payments are. But there is another option (and I know, because I do this for a living). Find a wholesaler who will wholesale/short sale your house to a rehabber. You may lose some of the equity in your home and walk away with little money, but in foreclosure you'll walk away with NO money... so the first choice at least gives you a little hope. Furthermore, it will stop the foreclosure and save your credit from one. Please, please, please... find someone before the lender pulls it out from under you! PLEASE! If you need more help, email me... fragglerockqueen@yahoo.com