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  1. #1

    Default Tried to Help a Family Member

    My question involves a foreclosure in the State of: Georgia

    About 8 years ago I had a family member that was not able to qualify for a mortgage and asked me to apply for the loan. I was told that they would eventually get the mortgage in their name. Well 8 years later that has not happened. In fact 3 years ago I secured a 2nd mortgage on the property for renovations.

    They have been living in the house & have been current on both the 1st &
    2nd. About a year ago they moved to a smaller place & put the property on the market. They continued to make the payments on time. About 8 months ago with no offers on the property they decided to rent the house to a couple while it was for sale to help with the payments.

    That couple recently moved out & they have been unsucessful in finding another tenant or in a buyer for the property. The 1st mortgage payment is around $2000, the 2nd is around $1200. The payoff is approx $475,000 with a recent apprasial of $800,000.

    Now this family member is telling me they can not continue to pay the payments & want to just walk away from the situation. The payment has not been made for this month as of today. I have a good job but I am not able to make that kind of payment & keep my own family expenses going.

    My question is what options do I have? Foreclosure??...Bankruptcy?? Short Sell?? How will this effect mine & my husbands assets? What should we do?? Thanks!

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Tried to Help a Family Member

    I see that you may have some equity in the property that would make for a fast sale if you sell the house for a low price.

    However, I really do not trust the appraisal that you have.

    Go to this site and find out the actual value of the house then we can try to figure out a cause of action for you.

    http://www.zillow.com/

  3. #3

    Default Re: Tried to Help a Family Member

    I went to the website you suggested but wasn't able to get any information. There were houses surrounding this property that showed values but not mine????

    I agree, I think the apprasial is high. I would love to be able to sell the property for the payoff of $475,000, but with the market in Georgia I don't think I will be sucessful. At one time we had the property listed for $525,000 with no offers! What happens in the meantime while you are trying to sell?

    I did talk to my family member today & they said they can not make any more payments. What do I do??

  4. #4
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Tried to Help a Family Member

    Quote Quoting Possible Foreclosure
    View Post
    I went to the website you suggested but wasn't able to get any information. There were houses surrounding this property that showed values but not mine????

    I agree, I think the apprasial is high. I would love to be able to sell the property for the payoff of $475,000, but with the market in Georgia I don't think I will be sucessful. At one time we had the property listed for $525,000 with no offers! What happens in the meantime while you are trying to sell?

    I did talk to my family member today & they said they can not make any more payments. What do I do??
    I am sorry but I really do not have good news for you.

    In Georgia the lender of the mortgages can file a deficiency judgment against the signers of the mortgage.

    Lets say that they end up selling the property after foreclosure for around $250,000. They can then come after you for the shortage. Yes, they can attach to your other assets, your cars, your home etc along with your wages and bank accounts.

    It is very hard to sell a home today as the market is flooded with foreclosures. You have to sell against the banks who are just bringing down the market values of the other properties.

    In GA the timeframe is short, only 90 days to do a foreclosure. I am not sure if bankruptcy is right for you as you have other assets in your names. You need to contact a bankruptcy attorney in your area. This site can help you locate one

    In a bankruptcy you are only allowed to keep around $8000 in cars etc.

    Here is a link to the foreclosure laws in GA

    http://stopforeclosure.com/Georgia_Foreclosure_Law.htm

  5. #5

    Default Re: Tried to Help a Family Member

    If the house does go into foreclosure & then sells for less than the 1st & 2nd mortgage can they go after assets that are only in my name Or can they go after my husbands as well as any joint assets? The mortgage for this property is in my name only.

    Thank you so much for your help!

  6. #6
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Tried to Help a Family Member

    Quote Quoting Possible Foreclosure
    View Post
    If the house does go into foreclosure & then sells for less than the 1st & 2nd mortgage can they go after assets that are only in my name Or can they go after my husbands as well as any joint assets? The mortgage for this property is in my name only.

    Thank you so much for your help!

    They will attach anything that YOU own. Meaning if you own another property with your husband they can attach to that as well. Cars, bank accounts too. Anything that is in joint ownership.

    They can NOT attach to anything that is in just your husbands name alone

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