Trying To Decide How To Handle Possibile Foreclosure

Should I dump this house and take a guaranteed loss or hang on as long as I can and possibly foreclose?

What is it like to go through foreclosure?

veggiedood veggiedood
51-55, M
1 Response Feb 19, 2010

When my parents died, I lived in the house I grew up in for awhile because I was too sad to let it go. However, the neighborhood had just become so bad over the years that I didn't want to stay there with a young son. So, I went to find something better and let the house be foreclosed upon. That was in '08 and so far they have done nothing with the house yet, although I am sure proceedings in the works. <br />
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In this economy, lenders don't really want the home back, so talk to them and maybe they will work with you!

Actually, lenders do extremely well by not "working things" out with you. But you present an interesting set of circumstances. If indeed the house is still in your name, and since it's empty, what would happen if you rented it out? No kidding, what's stopping you?

That banks are so busy with foreclosures makes people who don't know what's really happening unaware of opportunity. Chances are good that several lenders have purchased the mortgage and thanks to the neighborhood have determined it's a booby prize and packaged it to some other investment bank or group. That takes time, documents get lost, you may have an income source you can use for a long time before anyone fools with it. So, why not?

Think about this, there have been so many of these "packages" full of wads of mortgages that documents get lost and people are not realizing that paper mess is good enough to go to court and demand to see the original documents. I'm not suggesting you do that but depending on the circumstances, the current lender may not be able to prove all the payments haven't been made. I'm not saying become a crook like the banks, but if the house is still in your name, it's a liability to you. Why not get some money out of it?

JH Gordon
author of
How to burn down Wall Street and get away with it.