Home in foreclosure. Do I have to notify mortgage provider if

[KarlKarlKarl]

It's almost certainly too late for any new appeal. Appeals generally have to be filed within a pretty short period of time (e.g. 30 days). What the lender would likely have to do is file a new action to foreclose. Whether or not you tell the lender get the insurance.

Thank you. Its sure puzzling. And scary to not have insurance yes. It actually goes to a bigger issue. The roof is shot to hell. I’m looking at 12k to replace. It needed it 5+ years ago and it won’t make it through another Florida summer. In order to get the insurance I have to get the roof. So another reason to not tell the lender about the insurance. If they saw that and sped up foreclosure then I’d be out the money for the roof. I will be eventually anyway but I’d rather keep them in the dark as long as possible.

Anybody ever hear of a foreclosure going for 9 years?

 

[KarlKarlKarl]

Why don't you make a lowball offer and buy them out?

Good question. A lowball offer would be like $200,000. I don’t have anywhere near that kind of cash and i don’t think anyone will give me a loan.

 

[quincy]

Thank you. Its sure puzzling. And scary to not have insurance yes. It actually goes to a bigger issue. The roof is shot to hell. I’m looking at 12k to replace. It needed it 5+ years ago and it won’t make it through another Florida summer. In order to get the insurance I have to get the roof. So another reason to not tell the lender about the insurance. If they saw that and sped up foreclosure then I’d be out the money for the roof. I will be eventually anyway but I’d rather keep them in the dark as long as possible.

Anybody ever hear of a foreclosure going for 9 years?

There are houses that are foreclosed on by a bank but the house is not worth the cost of reclaiming due to various factors - perhaps because of the deteriorated condition of the home or neighborhood, or possibly because of a declining real estate market. It would be more costly for the bank to take over the home so the bank walks away from it.

What often happens is the homeowner who cannot afford the mortgage payments can also not afford regular maintenance and repairs or utility bills or property tax bills.

If the homeowner moves out, the house can become a neighborhood eyesore or hazardous or squatters might move in.

Eventually, the city will take over the house, possibly demolishing it.

A bank walkaway is not all that uncommon in some urban areas.

KarlKarlKarl, you should check with the city to see who is listed as owner of the home.

 

[doucar]

My foreclosure in Florida went on for 7 years before I finally lost. I had a good defense, but the judge got tired of it on his docket.

 

[quincy]

My foreclosure in Florida went on for 7 years before I finally lost. I had a good defense, but the judge got tired of it on his docket.

So the bank in your case took title to the property and then sold it at public auction?

There are some properties where the bank either delays the foreclosure for years (sometimes trying to work out with the homeowner a satisfactory modification of the loan) or the bank doesn’t finalize the foreclosure. The homeowner retains ownership (and liability) but is left in a situation where the s/he can be foreclosed on again at any time.

Banks don’t really want houses, though. They want money.

 

[KarlKarlKarl]

There are houses that are foreclosed on by a bank but the house is not worth the cost of reclaiming due to various factors - perhaps because of the deteriorated condition of the home or neighborhood, or possibly because of a declining real estate market. It would be more costly for the bank to take over the home so the bank walks away from it.

What often happens is the homeowner who cannot afford the mortgage payments can also not afford regular maintenance and repairs or utility bills or property tax bills.

If the homeowner moves out, the house can become a neighborhood eyesore or hazardous or squatters might move in.

Eventually, the city will take over the house, possibly demolishing it.

A bank walkaway is not all that uncommon in some urban areas.

KarlKarlKarl, you should check with the city to see who is listed as owner of the home.

Thanks Quincy. Fortunately our market came through all that. By 5-6 years ago those days are gone, the foreclosures are long sold. Homes are all renovated and either full with renters or buyers. The market (pre-covid) was excellent in our price range, more demand than supply.

We bought in 2007 (go ahead, call me stupid!!) for $250k. It dropped value in 2010 to about $130k. Based on comps if were market-ready today it would go on the market at $300,000 and close at around $275,000.

We’re in a nice suburb within a development within the county. They demolish in certain areas but quite rarely and never in these types of neighborhoods. Squatters are unheard of.

The market ends up taking care of things here. Example, when taxes become 1 year past due then a company comes along and buys tax certificate. After 2 years unless homeowner brings up to date the cert owner will bring taxes up to date and be deeded the home. Another option is that there are individuals and companies that scout out foreclosures and work a deal with banks or individuals Flipping is long gone but they’ll pick up a house for say $150k, put $50k in it and sell it for $300k

By market-ready I mean house needs roof, paint, some wood replacement outside, I’ve had HVAC repaired 4 times over last 6-7 years and still works fine but its 20 years old and on last leg. Appliances are 16 years old, cabinets are fine but should be upgraded, needs new carpet, bath and kitchen sinks/fixtures are also 20 years old. Tile. Other stuff. It’s not a craphole but it needs money. Roof and HVAC would be about $20k alone. Other stuff I don’t know. If I were forced to guess I’d say another $30-40k.

Sorry for the REALLY long reply. Everyone has been incredible in their efforts to help! I thought it best though to add more detail so I don’t waste anybody’s time.

 

[KarlKarlKarl]

My foreclosure in Florida went on for 7 years before I finally lost. I had a good defense, but the judge got tired of it on his docket.

That’s longest I’ve heard of. I’m in a large circuit. Took years to get to trial both times, bank took forever to re-file, lost that and now they’ve done nothing. Once they do it’ll sit on his docket another year or more I’d bet. Crazy.

 

[quincy]

If the bank has not followed through with the foreclosure on your house, you are still owner of the house. This means you have some options, some better than others depending on what you owe on the property.

You could sell the house in its current condition to pay off the balance on your mortgage loan and move into a house you can better afford. Or you could contact the bank and ask if they will approve a short sale, where you sell the house for less than you owe the bank but the bank accepts the lower payoff amount.

Or you could do what you’re doing - continue to live in the house, paying taxes and putting money into the house so it doesn’t fall apart, and trying to insure the house without the bank finding out - all while knowing the bank could start the foreclosure process again at any time.

The bank never notified you that they were no longer pursuing foreclosure, did it? Sometimes a bank will write off a loan as a loss when the bank figures it will cost more to foreclose and prepare the house for sale (repairs, maintenance, marketing, closing).

 

[KarlKarlKarl]

I didn’t realize I could sell it. Certainly an option but what I could get is below the balance, at least probably $50k. Short sale’s a good thought.

They’ve never notified me that they were no longer pursuing foreclosure. They only radio silence broken was I received a notification from the service provider a year ago that says they have “...made the decision to charge off your mortgage account. This means we will no longer charge any additional fees or interest. In the future, any unpaid balance may be required to be paid to satisfy the lien, for example sale of property.“

”Explanation of Impact to Charged-off”
Then it shows the total of principal, interest, penalties, other charges and fees, and past due payments.

Continues to say ”Your account has been charged-off in accordance with general accounting procedures. As such your account will no longer be charged any additional fees or interest.“

“The lien on the property remains in place and is still enforceable. ...you remain liable for the mortgage loan obligation. The balance on the account is not being cancelled or forgiven.“

Honestly I’m not entirely sure what all this means.

 

[quincy]

I didn’t realize I could sell it. Certainly an option but what I could get is below the balance, at least probably $50k. Short sale’s a good thought.

They’ve never notified me that they were no longer pursuing foreclosure. They only radio silence broken was I received a notification from the service provider a year ago that says they have “...made the decision to charge off your mortgage account. This means we will no longer charge any additional fees or interest. In the future, any unpaid balance may be required to be paid to satisfy the lien, for example sale of property.“

”Explanation of Impact to Charged-off”
Then it shows the total of principal, interest, penalties, other charges and fees, and past due payments.

Continues to say ”Your account has been charged-off in accordance with general accounting procedures. As such your account will no longer be charged any additional fees or interest.“

“The lien on the property remains in place and is still enforceable. ...you remain liable for the mortgage loan obligation. The balance on the account is not being cancelled or forgiven.“

Honestly I’m not entirely sure what all this means.

That is an important notice you received from the bank. It indicates the bank is not going to foreclose but you must pay off the lien they placed on your home when you sell it.

If you sell the home for more than the balance on the loan, you walk away with whatever money is over-and-above the amount of the lien. But, if you sell for less than the lien amount, you will have a problem transferring title to the purchaser. You will need to make up the difference somehow.

 

[BuyLowSellHigh]

I recently had a home fire. The checks from the insurance company were made payable to both me and my bank holding the mortgage. I had to submit the checks to the bank and they had a process to follow in order to get funds released. Basically I had to fix the damage, the bank sent their own inspector, then they released the funds so contractor could be paid.

Because the mortgage company generally has an interest in your property, I think you would have difficulty getting insurance while trying to leave the mortgage company out.

 

[quincy]

I recently had a home fire. The checks from the insurance company were made payable to both me and my bank holding the mortgage. I had to submit the checks to the bank and they had a process to follow in order to get funds released. Basically I had to fix the damage, the bank sent their own inspector, then they released the funds so contractor could be paid.

Because the mortgage company generally has an interest in your property, I think you would have difficulty getting insurance while trying to leave the mortgage company out.

One of the conditions of any mortgage is that the property must be maintained to protect the lender’s investment in the property. Homeowners insurance is one important way to protect the property.

 

[KarlKarlKarl]

That is an important notice you received from the bank. It indicates the bank is not going to foreclose but you must pay off the lien they placed on your home when you sell it.

If you sell the home for more than the balance on the loan, you walk away with whatever money is over-and-above the amount of the lien. But, if you sell for less than the lien amount, you will have a problem transferring title to the purchaser. You will need to make up the difference somehow.

Nuh-uh. You’re yanking my chain. Seriously that’s incredible information. Quincy I don’t know how to thank you enough. That very thing has been a huge question mark. And you’ve settled a slight marital spat. My wife has thought somewhat similar and I’ve told her to quit acting like a blonde (she’s a brunette.) Usually I hate it when she’s right but in this instance I’m thrilled to Tell her.

I actually had it backward last night. I can get more than the balance. It was 1:30 am and I wasn’t thinking.

Now I’m comfortable making some capital expense improvements. I can do as I’m going along but considering what you’re saying it appears I have equity. I don’t assume any lender will give me a home equity loan or am I just thinking stupid?

 

[quincy]

Nuh-uh. You’re yanking my chain. Seriously that’s incredible information. Quincy I don’t know how to thank you enough. That very thing has been a huge question mark. And you’ve settled a slight marital spat. My wife has thought somewhat similar and I’ve told her to quit acting like a blonde (she’s a brunette.) Usually I hate it when she’s right but in this instance I’m thrilled to Tell her.

I actually had it backward last night. I can get more than the balance. It was 1:30 am and I wasn’t thinking.

I recommend you consult with a real estate attorney in Florida. You will want to do a title search to see if there are liens other than the mortgage lien on your property (e.g., property tax lien).

An experienced real estate attorney might be able to negotiate with the bank to get a lien release on a short sale, for example.

Houses with a legal history can be difficult to sell. Many buyers will shy away from homes in foreclosure or with existing liens. The condition of the home is apt to be questioned because sellers have often put off necessary repairs and regular maintenance. Inspections can turn up long-ignored house problems, leading to lowball offers. Getting clear title to the home sometimes can take time.

But I wish you good luck.

 

[KarlKarlKarl]

Nuh-uh. You’re yanking my chain. Seriously that’s incredible information. Quincy I don’t know how to thank you enough. That very thing has been a huge question mark. And you’ve settled a slight marital spat. My wife has thought somewhat similar and I’ve told her to quit acting like a blonde (she’s a brunette.) Usually I hate it when she’s right but in this instance I’m thrilled to Tell her.

I actually had it backward last night. I can get more than the balance. It was 1:30 am and I wasn’t thinking.

I recommend you consult with a real estate attorney in Florida. You will want to do a title search to see if there are liens other than the mortgage lien on your property (e.g., property tax lien).

An experienced real estate attorney might be able to negotiate with the bank to get a lien release on a short sale, for example.

Houses with a legal history can be difficult to sell. Many buyers will shy away from homes in foreclosure or with existing liens. The condition of the home is apt to be questioned because sellers have often put off necessary repairs and regular maintenance. Inspections can turn up long-ignored house problems, leading to lowball offers. Getting clear title to the home sometimes can take time.

But I wish you good luck.

Quincy I can’t thank you enough. You’re info has been invaluable. Thank you for your attentiveness. I will take you advice.

This forum is awesome. I’ve been going around it and those contributing advice are truly providing a valuable free service at this time To so many people that are in so much need. More than myself I do realize.