Foreclosure

[Chelda]

My husband and I reside in Illinois. We own a mobile home and we just purchased another home. We've attempted to sell the mobile home and have had no luck with it at all.
It's getting pretty expense to pay both mortgages so basically someone suggested foreclosure on the mobile home.

My questions are, If I were to foreclose on the mobile home, can they garnish my wages, how long is the foreclosure procedure and when will it start?

Your advise is greatly appreciated. Thank you.

Chelda

 

[HomeGuru]

That someone is an idiot.

 

[Chelda]

You are probably right about that person being an idiot but what happens if that idiot is a Real Estate agent?

Basically the suggestion that was made was, if we are content with our new home; as a final purchase, can't sell the mobile home and can't afford to continue to pay both mortgages, then to foreclose on the mobile home. The person didn't go into any legal details, however. And I'm very curious to what a foreclosure entails of and how long the process takes.

Can you give me any details or is there a website you can refer me to that would give me information on foreclosure procedure?

Thanks,

Chelda

 

[HomeGuru]

Then that real estate agent is an idiot unless you misunderstood and it is not foreclosure but deed-in-lieu of foreclosure. In this method, you give the property to the lender as a way to sidestep costly and time-consuming foreclosure action.

I am under the impression that you seem to think that you have the right to foreclose. You do not. Only the mortgage company has the right since you pledged or mortgaged the mobile home to be used as collateral for the loan.

Let's say, you stop making payments and the lender files foreclosure action. Not only will your credit be messed up but prior to or soon thereafter, the court will issue a judgement against you. Depending on the amount that the property is sold at the foreclosure sale, you will be liable for the difference, if any, between the sale price and the mortgage.
Let's say that you have a $80K mortgage and the property sells for $60K. You still owe $20K including legal fees, court costs etc. The lender will have a $20K+ judgement against you and will file this judgement as a lien on your current property. If you do not pay the amount, the lender will foreclose on the judgement lien. What this means is that now your new home is under foreclosure.
Did the Realtor tell you that?