Colli Real Estate

Which option when facing foreclosure should we consider?

Discharged of BK 7-15-09. We are in foreclosure and we just received a letter from Wells Fargo informing us of their Borrower Counseling Programs-they state an application is enclosed but there was none. All we got was the letter typical of WF.
They mentioned two of the options available Pre-Foreclosure Sale/Short Sale and Deed in Lieu of Foreclosure. Which costs the servicer of the loan more money and which takes the longest? Wells Fargo bought our loan and they have been nothing but nasty.
At first we were just going to let them take our house, now after doing a lot of research and reading, we are certain that we are part of predatory lending and there are violations of the TILA act on our HUD-1. We want to buy us some time to make sure that Wells Fargo has the legal right to foreclose-do they actually have the original note. We live in a nonjudicial state so we would have to start legal proceedings. Any helpful thoughts would be appreciated.

I used to work for Wells Fargo and I can honestly tell you they are absolutely the ‘worst to work with” when it comes to modifying or re-doing your loan. They just don’t want to work with people, but actually want the “loan off their books.” They just don’t care and really don’t help out anyone. I know of several Wells Fargo employees who even faced foreclosure because they wouldn’t work with them.

Here’s the options you mentioned:

Short Sale – This is the process where you would list it most likely with a realtor. The realtor can do a market value of your property to let you know what you can list it for to get it sold. This option may buy you more time to remain in your home. Wells Fargo has to accept the offer on the house (short of the actual amount owed). The process can take up to 6 months – talk to a Realtor they will tell you all about it.

Deed in Lieu of Foreclosure – This is where you basically sign your house over to Wells Fargo and they deal with it… They handle the process. You let Wells Fargo deal with all the specifics (this would be like handing your car over to the loan company – giving them the pink slip, etc).

I would advise you to speak to a “tax attorney” who can give you the legal implications of both processes. In some cases, the amount owed over your property (say you owe $140,000 they short sell your property for $100,000) you may become liable for the $40,000 in unforegivable debt. I’ve know people that had to declare the “loss” as income on their taxes – so please talk to a tax attorney.

Here is a Non-Profit organization who (does not charge a fee) but can prepare a modification to submit to Wells Fargo for approval – contact them:

http://www.hopenow.com/

Here is the Governement Website for the Making the Home Affordable Program – check to see if your loan is eligible:

http://makinghomeaffordable.gov/

On the positive side – there is a loan that will be available soon – where you can go 125% of the appraised value of your property – Take your appraised value then multiple 125% = How much you can do a loan on your particular property. I am not sure if your loan fits that criteria…but is surely worth checking on.

Preforeclosure Investing Secrets Exposed! – Buying Notes is Key to Winning the Cash Flow Business

How to Make Money Buying Pre Foreclosure Properties Before They Hit the County Courthouse Steps: The Complete Guide to Finding and Buying Pre-Foreclosure Properties $29.95 Before Thomas J. Lucier wrote the first edition of How To Make Money Buying Pre-Foreclosure Properties Before They Hit The County Courthouse Steps in 1989, he was making time consuming and costly mistakes. The mistakes were inevitable; no one had written a book on how to buy pre-foreclosure properties, so Tom had to learn the hard way from his own mistakes and first hand experiences. All of the ad…

The Pre-Foreclosure Property Investor”s Kit $17.81 The complete toolkit for pre-foreclosure investing Finding, researching, inspecting, negotiating, buying, and reselling pre-foreclosure properties is a lot of hard work…

Foreclosure Investing in the New Economy $27.99 These are historic and challenging economic times for investors. The common real estate investing practices of a few years ago have rapidly become inadequate when it comes to making money in today’s distressed real estate market. Foreclosure Investing in the New Economy is clearly explains the basics of investing in distressed property, bearing in mind the context of the market since the bursting of the housing bubble and the financial industry meltdown of 2008. In his accessible style, foreclosure investing veteran Kirby Cochran explains the foreclosure process and the essential strategies for making money investing in pre-foreclosure, foreclosure auction, and bank-owned REO properties. Cochran gives investors insight into the business of distressed property investing in a way that helps newcomers become familiar with the landscape while avoiding potentially devastating pitfalls. Both new and intermediate investors will gain critical skills for success as they read Foreclosure Investing in the New Economy.

The Pre-Foreclosure Property Investor`s Kit (Paperback) $33.65 Pre-foreclosure real estate is one of the hottest investment opportunities on the market. The Pre-Foreclosure Property Investors Kit offers step-by-step instruction and no-nonsense advice on how to find great deals, estimate fair market value, negotiate with sellers, sell your property on your own, and win big in real estate. Youll learn how to get the best deals on foreclosure properties before they go to auction and utilize simple ready-made worksheets, checklists, forms, and agreements that make getting started easy. Even people of modest means can get into pre-foreclosure investing—all it takes is a little hard work, persistence, and the tools youll find in this handy guide.

Tags:   foreclosure · foreclosures · foreclosuretrackers, · mortgage · ownedNo Comments