OfflineChief Justice Jean Toal of the South Carolina Supreme Court issued an administrative order that effectively halts foreclosures in that state. Instead, all pending foreclosures cases as of May 9, 2011 and all future foreclosure cases, must go through a "mandatory foreclosure intervention program".
The basic reason is that the banks are so slow with their process of other options, such as short sales, that sometimes the banks are putting the cart ifronton of the horse. This order hopes to stop this practice.
South Carolina is not the first state to enact this type of mandatory foreclosure mediation. Connecticut has a bill in the works and Washington State already passed such legislation last month. Now, all states should put such programs on their books. It surely would reign in lazy or abusive lenders.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
With South Carolina being a judicial foreclosure state, one can only imagine how the court system was getting clogged up.
and think of all the other states in a similar situation.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Do you know what that foreclosure intervention program entails? I guess that's why they have been dragging their butts on my pre-foreclosure.
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You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
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I don't know exactly. But I would imagine that it is going to go through every step to make sure the current owner can stay in their house if they want as long as they meet income requirements.
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They messed around on the loan modification procedure for months and then said they couldn't do it. Now they are telling me I have to list it with a realtor for 3 months before I can do a deed in lieu. If I had known that, I would have listed it months ago, but I've been trying to sell it myself as a lease w/option, but no luck so far. I've been asking enough down to pay the back payments and fees (which keep adding up)and a little more than the total of the mortgage payment and HOA fee for the lease payment. I guess it's asking too much. The condo above mine, which is identical to mine, is listed for $35,000 less than what I owe on mine. I bought it just before (or after?) the bubble burst... October 2008.... the worst possible time.
I had read something earlier about the foreclosure laws changing and I thought that had a lot to do with their procrastination. They told me if I could come up with $300 more a month, they could work with me. Guess I'll have to go to work at Wally World if I don't hurry up and sell something!! LOL
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
make the bank do the job and give you that modification IF YOU HAVE INCOME. If you are underwater, tell them you want debt forgiveness. But if you're going to lose the house; it may be smart to strategically default on the loan and live there for free until the move date comes along. Not pretty to think about but you need to think of yourself and your future and not worry about the bank.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
I have already reached that point. When I had to take early retirement last July, it went downhill from there. I have been living here for free since last November. I had to keep Cobra which would just about have paid my mortgage every month, but I was sick and had to have medical coverage. Finally, they told me not to even try to make payments. So I started trying to sell it, then lease with option. Just last week, they told me about having to list it with a realtor for 3 months. They also told me it would go into foreclosure in November if not sold or anything else has not changed.
I think since the banks caused all the problems for homeowners, the Feds should make it a law that foreclosures cannot negatively affect your credit. Of course my situation was different from most, but I still am caught in the rat race of it all.
What do you mean about asking for debt forgiveness? Do you mean for the back payments and fees? If I thought they would do that, I could probably sell it with a lease option a lot easier because I wouldn't have to ask for such a high option fee.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
That's what I'm thinking.. what??? LOL... well, I'm here for now... don't know where I'll be after November. Thanks, I might just do that 'cause I'm still trying to figure out that Google thing you told me about~!
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Shirley,
key word... "IF"
how do you meet income requirements according to the banks-it never happens!
Find someone who would like to buy your condo as a short sale... if you have a good realtor that does short sales, she/he can submit the offer at the same time as they submit the petition for the short sale... it will take several months, so you will be able to stay there until it all goes through...
wishing you sucess,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
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Valerie, I've come to that conclusion too.. it never happens! The only problem with a SS versus DIL is that with SS, the bank can come back and make you pay the difference. At least that's what my bank told me. With a DIL, you just walk away. I think both affect your credit for 2 years. Does anyone know if this is correct? Bill?
Bill, can you answer my question from 2 posts above? I thought I saw a little light at the end of the tunnel when you said I could ask for debt forgiveness.
Were you talking about past dues and fees?
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
there are lots of things that banks can do. If you are underwater, they can reduce the amount of the mortgage to a more appropriate level. They can take your arrearage and add it to the end of your loan (forbearance). They can just plain forgive your back payments. They can restructure your loan at 2% interest. They have a lot of options. It's just getting to the correct knucklehead to help you that can be the problem.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Ok, I didn't know they could do that stuff. BTW, I got your PM and sent you one.
thanks again!
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.