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When to Let the House Go
My question involves a mortgage in the state of: CA
My mother's house is currently in foreclosure as of March 2011. She refuse to leave the house until she receives a check from the bank to cover for moving expenses. I am the co-owner of her propery. I believe the bank figures by now that she hasn't been paying her mortgage which makes me & my credit look really bad. I want my name DESPERATELY off this house. Is it possible that if she were to call the bank & just inform them that she can no longer afford the house & for her to receive "financial moving support"?I'm not exactly sure where she get's this. Is there such a bank who would pay an owner to move out??? Never heard of but she insist that such a thing exist. It's beyond me that of all the month's my mother hasn't been paying mortgage, I would think that she's saving some money for an apartment rather then to drag on the waiting period for a non-existent check. Unfortunately, she hasn't been saving a dime & she's not really making it any easier for me. At some point, I will have to file for bankruptcy. I've been engaged for almost a year but can't get married until my name is off this house. I'd rather having to file bankruptcy to get rid of it before getting married. Any advice or suggestion would be greatly appreciated!
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Re: Let the House Go
She's probably thinking of "cash for keys." http://homebuying.about.com/od/forec...8_cashkeys.htm
There is no requirement that the bank make such an offer. Some may, some may not. They might be perfectly willing to let her live there until they get around to completing the foreclosure. As for your credit...you're screwed. Thanks mom! There is really nothing you can do to fix it now. A bankruptcy might help but only a competent local BK lawyer can properly advise you.
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Re: Let the House Go
A co-owner doesn't obligate you to the debt (other than the peril of losing your interest in the property). All it takes to get your name off the property is a quit claim. It would not take a bankruptcy and I have no idea why any of this has any bearing on you getting married.
If you were a co-borrower/co-signer on the mortgage, you've got a bigger issue. However, hopefully this loan is a non-recourse one, so while you'll have trashed credit, you won't have any persistent debt hanging over you.
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Re: Let the House Go
Thank you. I appreciate the response. So basically, I (co-owner), can quit claim my mother's house over to her (owner) even though it's currently in foreclose status? At the time I became co-owner, it was because she had no work history & my father (now deceased) was retired. They needed me because of my stable work history. Never did it cross my mind at the time that I would have a family of my own. My fiance is concern that if we get married, my screwed up credit will effect his good credit.
Thank you. I appreciate the reponse.
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Re: Let the House Go
Are you a signer on the loan? It sounds like you are (a stable work history isn't required to be an owner, only a borrower). If you are on the loan, a quit claim WILL NOT get you out of the responsibility for the loan. It just gets rid of your ownership (which would be a stupid thing to do is you remain responsible for the debt).
Bankrutpcy won't get rid of the loan. It may get rid of the recourse against you if there was some.
What exactly is the situation? What are you trying to accomplish?
Sounds like you will just get foreclosed on and take whatever lumps are involved. If you are not on the loan, all you lose is your ownership share.
If you are, and the loan is non-recourse, that's the end of it (other than the dings on your credit history which are already accruing).
If it is recourse, thn you will have to consider if bankruptcy is required.
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Re: Let the House Go
My whole situation has now changed. I am the co-borrower and my mother is the borrower. We both just received notice from the bank's attorney regarding collecting a debt pass due as of March 2011. My mother hasn't been paying the mortgage because I have became unemployed since 11/2010. This is where all the bills have accumulated and got to the point where we couldn't afford it anymore. We were informed that foreclosure has taken effective as of 1/30/12. We did make an effort in 2/11 to put the house on short-sale to avoid foreclosure but unfortunately we have 2 mortgages on the house. The first mortgage was willing to forgive the loan but the second mortgage would not cooperate with the understanding that they just want their money & don't care about the house. So it prolonged the time period until it got to the point where we were most likely to face foreclosure. I was just wondering, what is the average time frame of families living in the home before they are evicted or given certain amount of days to prepare to move?
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Re: Let the House Go
Depends on the banks inclination. They could start eviction procedures immediately, or they can sit on it for a while.