Washington Foreclosures Legal Questions

There are two options that work in all the states of the United States, and possible other options that are state specific for the particular state you live in and you would want to speak to a lawyer in your state about if any of those options are available. The first option to stop a foreclosure to save a home is usually filing a chapter 13 bankruptcy. The bankruptcy automatic stay will stop all foreclosure proceedings and allow you to make payments on your mortgage when the bank no longer is accepting payments and also allow you to establish a repayment plan to repay back payments. My law firm happens to also file discrimination complaints for handicapped people with the US Department of Treasury under their sub department of housing and Urban Development or HUD. These complaints can determine if the bank in fact discriminated against you because of your handicapped and gave you a predatory loan, knowing you would not be able to afford to pay back based on your disabled status. This option is offered in all 50 states. The vast majority of attorneys do not file these complaints, as most are unaware of them. But at our law firm we have employed the former director who basically "wrote the book" on the procedures needed for filing these complaints. If you feel you have been the victim of a predatory loan based on your disability, then this is the cheapest and most useful option available.     I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147 #bankruptcy  #lawyer  #FallRiver  #Chapter7  #chapter13  #debt  #debtsettlement  #foreclosure  #attorney   #cantpaybills  #lawsuit  #court  #bankruptcycourt  #eviction  #lostmyjob... Read Answer

What you need to do is file for chapter 7 bankruptcy as soon as possible. Even if you file just the basic documents, you will have time to complete the entire petition later, although it's only a few days. A chapter 7 bankruptcy will do two things your situation. First of all the automatic stay will stop your bank from foreclosing on your property and give you enough time to sell your house. Even after your bankruptcy has been discharged, the bank does not usually stop foreclosure proceedings right afterwards. This allow you to have enough time to complete a sale of your home. Simply because you file bankruptcy on your home, does not automatically give it to the bank. They still have to go through all the foreclosure proceedings to take your home. There should be more than enough time to get the home sold, and pay the bank off even after bankruptcy. Even though the debt is discharged, you will still need to pay the bank from the sale of the property, since they have a security interest in the property. The second important thing a chapter 7 bankruptcy will do for you in this situation is to not make you liable for any deficiency between the sale price and the mortgage still on the property. If you do not file bankruptcy before the foreclosure, the bank does not need to go after you for the delinquency, they can simply report as a loss to the IRS. The problem with this is if they reported to the IRS as a loss on their and the IRS will charge you as income for the calendar year of the foreclosure. Meaning if your house has a mortgage for $200,000 and the bank sells it at foreclosure sale for $100,000, you have delinquency of $100,000. If the bank reports this as a loss, the IRS will consider you made $100,000 in that calendar year in you will be forced to pay the taxes as if you made an extra $100,000 over your usual income. I suggest you file chapter 7 bankruptcy as soon as possible, it must be filed before the actual sale takes place. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147 #bankruptcy  #lawyer  #FallRiver  #Chapter7  #chapter13  #debt  #debtsettlement  #foreclosure  #attorney   #cantpaybills  #lawsuit  #court  #bankruptcycourt  #eviction  #lostmyjob... Read Answer

The summons should tell you what to do. If you want to keep your house, you need to file a response, either an answer or a motion, probably with the lawyer for the collection agency. I recommend that you get a lawyer to help. If you don?t respond properly, you will probably get a judgment against you.... Read Answer

There is no reason that they can't. Due on sale clauses do not work when the transfer is the result if inheritance. However, she will have much difficulty discussing anything with the lender. Make sure she gets a certified copy of the death certificate. It would help is there was a probate so that the lender has something with a court stamp on it that they can put in their file. The probate may or may not be necessary. That depends upon any number of other factors.... Read Answer

It depends on the state law where the real property is located. If you live in Arizona then I will be happy to meet with you for an hour to discuss the issues related to: working with the lender: short sales, loan modification, and deeds in lieu. Then, as related to Arizona law, the trustee's sale (foreclosure process), and deficiency, what assets are protected if a lender sues you. I will give you a flow chart dealing with deficiency issues, a list of exempt property, the Short Sale Advisory from the Arizona Department of Revenue, and a copy of the Mortgage Forgiveness Tax Debt of 2007. We will also talk briefly about issues related to homeowner's association, credit and insurance. Lastly, we will spend a moment explaining the tax consequences of short sales and foreclosure. I am not a tax expert, therefore you will be provided the names of 2 certified tax specialists. It is very important that you meet with them to discuss the taxes issues in more depth. You may find that tax consequences may influence your decision more than the other reason that you believe is important today. I cannot, nor can anyone, predict the exact credit consequences as it relates to some future lender deciding how any one of the events listed above will affect your future credit. Nor, can I predict the length of time it will take for the lender to respond to or complete whatever legal action they may choose. What I will do is detail the time frames set forth in the Arizona statutes as related to trustee's sales. This meeting must be done in person. It normally takes the full hour to review all of these issues. My fee is $200 for the hour meeting. In order to prepare for this meeting you will need the following: 1) The current fair market value of the property (what would it sell for in today's market). 2) The proximate amount(s) owed to each lender(s). 3) Whether or not the loans are the original purchase money loans. I will explain this more at the meeting. 4) Who was the borrower on the original loan(s). 5) Who holds title at this time. 6) Has a trustee's sale (foreclosure) been started? 7) Have you signed any documents such as short sale, deed in lieu or loan modifications? 8) Bring a list of your questions. My experience is that I cover at least 90% of your questions in my presentation, but it is helpful to know what is important to you. If you want to schedule the meeting call so that we can coordinate our schedules.... Read Answer

The lender will have to agree to a Deed in Lieu, and since there is a second, it is doubtful that they will. Depending on what stage you are in the foreclosure process, you could have as much as a minimum of 4 months until a sale. A foreclosure of the first will eliminate any residual debt on that loan, however the second can pursue you personally on its loan. If you live in Washington state, you can take advantage of the mediation program which will delay a sale until a mediation is completed. You should contact a lawyer or housing counselor.... Read Answer

It sounds like they are doing a trial loan modification. It would of course be bet to have documents, but you can?t force them to do a trial. I suggest that you make the payments while requesting documentation. If the loan modification goes through, you definitely need documents to establish the new terms and conditions of the loan (principal amount, interest rate, etc.)... Read Answer

If you were discharged, they cannot legally recover money from you at this time. you might inquire if they will consider a loan modification now. but if you home is "under water" you may wish to avoid reaffirmation or a new undertaking of liability. Until the foreclosure is complete you can live there without obligation under the mortgage, again, if you were discharged.... Read Answer

I'm assuming you're referring to a private foreclosure. (The alternative is a judicial foreclosure, in which you would be served with court papers.) Yes, there are several papers that you would need to receive if a private foreclosure is to be conducted. Assuming you are asking about a residence, you would first need to receive a notice of intent to foreclose, which invites you to contact the lender to seek a resolution other than foreclosure. After that are the following:* *Notice of Default**. That document is the first document in the foreclosure process. It gives you the right to reinstate the delinquent matter within a 90 day period.* *Notice of Trustee's Sale**. This document must be published in a local newspaper and posted on the property. Three weeks after the posting, the property can be sold.* *Good luck.*... Read Answer

One of the problems with this listserv is that we do not know where you live and cannot give legal advice to someone located outside our state, unless it is about our state's laws. Since you are talking about "foreclosure" I must assume you are not in Arizona. Talk to a competent real estate and/or bankruptcy attorney in the state where you live. It is extremely important that you find out your rights immediately.... Read Answer

Assuming you listed all your debts, including the second mortgage, then the discharge eliminates your obligation to the debts. Eventually the house will be foreclosed. Make sure to check out your obligations to pay any homeowner's association, maintain the property, insurance, etc, while you own the property.... Read Answer

The following assumes that your property is located in Arizona. If the lender or HOA sells your property at a foreclosure or trustee's sale then any excess sale proceeds will be distributed to the junior lien holders. If there are no junior lien holders than the excess sale proceeds will go to you. Of course, the lender or HOA have the right to charge fees and costs which will be deducted from the sale proceeds. I hope this helps.... Read Answer

Technically, they have the right to file a lien when you are delinquent. However, since they wrote you a letter, they should be bound by their own terms. I would write them back explaining your intentions and that you are not responsible for any additional charges beyond what was in the first letter, and that they should remove the lien.... Read Answer