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How does foreclosure work?

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Junior Member
What is the name of your state? FL

I am writing for my son. Here is the long story -- My daddy put my son's name on the paid off homestead when mama died. Because of there being more than 1 grandchild daddy and my son took out a mortgage on the home so that there would be no family hard feelings that the home was given to my son. My son and his wife and children lived with and cared for daddy. All living expenses, including car, gas, food, utilities, etc. was paid by everyone. Daddy passed away in 2003 and my son was not able to pay all the bills so he wound up in bankrupty, the house was included in BK. However, he continued to make payments on the house and last year was unable to continue all the debts and got behind on the payments. There was a loss mediation and a new contract was signed which now makes the home no longer a part of the bankruptcy because he signed a new contract after the discharge of BK.

My son moved his family to a new county this year and is renting a run down mobile home for 1/2 the cost of the mortgage and had renters in the home. He has the house for sale with a real estate person. The renters moved out in August and left the house a mess. Garbage is everywhere, holes in the wall, etc. Also this home was my parents home of 55 years so there is a lot of outside stuff, daddy collected everything from mobile home axles to iron and transmissions. My son has a buyer for the home offering enough to pay off the mortgage, pay the real estate commission and giving him $500 to boot. The problem is the buyer wants EVERYTHING cleaned up and my son has no way of doing so and no money to hire help. He worked all day today to just try and do some cleaning but without a truck and a place to carry the junk, it is an impossible task. He even pulled stuff to the side of the road and put a free sign but no takers for that either.

The question, he cannot make the mortgage payment beginning this month and if the buyer will not purchase the home if it isn't cleaned, then he has no choice but to allow foreclosure. Would someone tell me the steps to foreclosure, what happens with the sale, how much would his wages be garnished if the house didn't sell for the mortgage amount, will there be a lien recorded against him and how would that be satisfied, how long would the foreclosure be on his credit. Or any suggestions to prevent foreclosure other than paying the monthly premiums. The mortgage company has forced insurance on the home because it will not pass insurance inspection. He is wanting to re-establish his credit so bad. His wife finally got a job this week so now maybe there will be 2 incomes. She hasn't been able to work because the child care is more than what she could earn because she has no training.

Please if anyone can help me understand foreclosure and the steps and how it will affect him, I would so much appreciate it. Thanks


Senior Member
Here's part of your answer.

The land will be advertised for so many weeks in the local paper, and then it will be auctioned off at the courthouse. If there is no purchaser, the lender will probably purchase it and try to sell it. If it brings enough to pay off the loan (which hardly ever happens) then fine and dandy. If not, then whoever the deadbeat is will get sued for the difference.

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