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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] All you can do... Posted by Ward-CA- on July 28, 2010 at 11:53 AM In Reply to: What would happen? posted by Yann on July 27, 2010 at 11:35 AM Yann, Maryland is a non-judicial, trustee sale state…just like California. Therefore, there’s not going to be any judge involved in the foreclosure process. The most probable foreclosure scenario that could happen in Maryland is that at the foreclosure auction of your house, no 3rd party makes any bid…resulting in the lender getting title to the property as an REO. Then the lender would dispose of the REO as best they could…either through a retail or wholesale channel. At that point they’d know the amount of any deficiency that you might owe them. Then they could initiate a lawsuit in MD to try to collect the deficiency. But they probably won’t if they felt it would be a futile exercise since you’re broke, living out-of-state, and own no other real estate they could lien. At this juncture they might outsource it to a collection service that would try to rattle your cage via several long distance dunning phone calls…making empty threats to try to force you to send them payments. My advice is for you to get a Google Voice phone number to isolate you from any and all unwanted phone calls, and do your banking at a local credit union that’s not connected to your home lender in any way. So, if your lender is nuts and gets a useless MD default judgment against you for the deficiency, then and only then would you consider using the bankruptcy card. But that maneuver is way, way down the road. In the meantime, don’t needlessly worry about mythical things such as any repossession action of any kind, nor any court dictating any kind of repayment schedule, etc. Just remember that all you can do is all you can do, and all you can do is good enough. ---------Ward ================== Hi, My family is in a difficult situation where we might be looking at foreclosure and have no idea what that really mean? What is going to happen to our household? We moved to Los Angeles from Baltimore, MD for work a few years ago. We own a house in Baltimore that we can't pay anymore. We just missed our first payment this month. I'm a father of 2 children under the age of 3 and with my wife we had to chose what to pay, mortgage payment had to be dropped so we could make it. We contacted the bank in June to find alternatives to foreclosure when we started seeing our dire financial situation. Since we're not living in the house and we haven't had any success trying to sell that house for the last 6 months, even advertised less than what we owe to the bank, we decided to go for a deed in lieu. Everything seemed to go smooth until the PMI company asked us for $40k, $15k cash and $25 in promissory notes, to cover their costs. We did not expect that, even though after doing some reading I do know now why they asked us to participate in the costs. Financing 100% of the house may not have been the best move we ever did. This is now the major road block between us getting rid of the house somewhat gracefully and a foreclosure. Since we don't have the money to pay the mortgage, finding $15k cash is very unlikely for us. And actually from our perspective, even though it makes sense from the paperwork, it looks like an unreasonable request given the circumstances and the fact that we've burned our entire savings keeping up with mortgage payments until last month. Something else that we understand is that in the long run foreclosing might end up costing us more than the $40K the MI company is asking for... but we just don't have that money. If a judge in Baltimore decides to go ahead and foreclose the house, what is going to happen? Are we going to have people coming and repossessing our car? Our house broken in with the TV and computer gone and other things like that? Or is there going to be a payment plan setup by the court? Again we now live in Los Angeles, CA and the house is in Baltimore, MD... just wondering what the future has in store for a family in a difficult financial situation. Thanks for your help. Follow Ups: Re: All you can do... Yann 12:19 AM, 07/28/10 (2) You can rest easy... Ward-CA- 2:51 PM, 07/28/10 (1) Re: You can rest easy... yann 3:02 PM, 07/28/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Yann, : Maryland is a non-judicial, trustee sale state…just like California. Therefore, there’s not going to be any judge involved in the foreclosure process. : The most probable foreclosure scenario that could happen in Maryland is that at the foreclosure auction of your house, no 3rd party makes any bid…resulting in the lender getting title to the property as an REO. : Then the lender would dispose of the REO as best they could…either through a retail or wholesale channel. At that point they’d know the amount of any deficiency that you might owe them. : Then they could initiate a lawsuit in MD to try to collect the deficiency. But they probably won’t if they felt it would be a futile exercise since you’re broke, living out-of-state, and own no other real estate they could lien. : At this juncture they might outsource it to a collection service that would try to rattle your cage via several long distance dunning phone calls…making empty threats to try to force you to send them payments. : My advice is for you to get a Google Voice phone number to isolate you from any and all unwanted phone calls, and do your banking at a local credit union that’s not connected to your home lender in any way. : So, if your lender is nuts and gets a useless MD default judgment against you for the deficiency, then and only then would you consider using the bankruptcy card. But that maneuver is way, way down the road. : In the meantime, don’t needlessly worry about mythical things such as any repossession action of any kind, nor any court dictating any kind of repayment schedule, etc. : Just remember that all you can do is all you can do, and all you can do is good enough. : ---------Ward : : ================== : Hi, : My family is in a difficult situation where we might be looking at foreclosure and have no idea what that really mean? What is going to happen to our household? : We moved to Los Angeles from Baltimore, MD for work a few years ago. We own a house in Baltimore that we can't pay anymore. We just missed our first payment this month. I'm a father of 2 children under the age of 3 and with my wife we had to chose what to pay, mortgage payment had to be dropped so we could make it. : We contacted the bank in June to find alternatives to foreclosure when we started seeing our dire financial situation. Since we're not living in the house and we haven't had any success trying to sell that house for the last 6 months, even advertised less than what we owe to the bank, we decided to go for a deed in lieu. : Everything seemed to go smooth until the PMI company asked us for $40k, $15k cash and $25 in promissory notes, to cover their costs. : We did not expect that, even though after doing some reading I do know now why they asked us to participate in the costs. Financing 100% of the house may not have been the best move we ever did. : This is now the major road block between us getting rid of the house somewhat gracefully and a foreclosure. : Since we don't have the money to pay the mortgage, finding $15k cash is very unlikely for us. And actually from our perspective, even though it makes sense from the paperwork, it looks like an unreasonable request given the circumstances and the fact that we've burned our entire savings keeping up with mortgage payments until last month. : Something else that we understand is that in the long run foreclosing might end up costing us more than the $40K the MI company is asking for... but we just don't have that money. : If a judge in Baltimore decides to go ahead and foreclose the house, what is going to happen? Are we going to have people coming and repossessing our car? Our house broken in with the TV and computer gone and other things like that? Or is there going to be a payment plan setup by the court? : Again we now live in Los Angeles, CA and the house is in Baltimore, MD... just wondering what the future has in store for a family in a difficult financial situation. : Thanks for your help. 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