Unfortunate foreclosure, what’s next?

TBark · #1 08-18-2019, 12:51 PM

A family member is in a situation where the home from their first marriage is about to be “walked away from”
The divorce was aprx 4 years ago now and both have new marriages with kids.
Their one shared child has thankfully kept a fair relationship and shared custody.
The house should have been sold at that time but the decision was made to rent it out and hopefully in time gain enough equity to cover the mortgage balance. This didn’t happen however.
The house is in a small east central AB town and the poor economy and the upkeep of the home has just got to the point where there is no longer a renter who will commit to a lease.

I have been in this house a few times myself and one major issue had concerned me from day one. There was always serious concrete and foundation issues with this house, major floor cracks and heaves, the cost to bust up and repour the floor is likely out of the question. The water table in this part of the town was known to be an issue.

My question to this family member was to go back and check the inspection report at the time of the house purchase, what did it say?
If a bank authorized a mortgage on a home with these issues there could be some recourse?

So likely the decision will to be to walk on this home, an estimated $75 k remaining mortgage balance and maybe a $40k value on the home and lot the way it is now.

Now what happens when it defaults, payment on the mtg stops?
Would both names on title still be served with the debt when all settles out on the home ( value to balance) is determined?
Is a divorce - foreclosure necessarily mean bankruptcy? I think not.
My advice was to take ur lumps, acknowledge 1/2 of the balance debt and move on, if this is arrange it will be a contract of debt payment with the bank and will not amt to a foreclosure with credit in the toilet for the next 7 years.
Am I correct or close in my thinking?

Not asking the AO crowd for their opinion, unless they have personal related experiences.

TBark

bessiedog · #2 08-18-2019, 12:57 PM

Yea... don’t sweat dat one guy.....

Prolly a Sabre’s fan..... he’s bitter.

Jimm · #3 08-18-2019, 02:05 PM

17,500 each, cut the rope that ties them together and have a bonfire and even if they have personal experience it’s still their opinion of your situation. I would never post anything on here and ask a question and then say “ not looking for an opinion “. Wrong group of people for that, you fact, call a lawyer they are good for that, you want opinions, hang on,, we are good for that

1899b · #4 08-18-2019, 02:14 PM

Quote:

Originally Posted by Jimm

17,500 each, cut the rope that ties them together and have a bonfire and even if they have personal experience it’s still their opinion of your situation. I would never post anything on here and ask a question and then say “ not looking for an opinion “. Wrong group of people for that, you fact, call a lawyer they are good for that, you want opinions, hang on,, we are good for that

Lawyers are good for nothing. Been through what the OP is taking about. Would rather not relive it at this point or wish it on anyone...

amosfella · #5 08-18-2019, 02:44 PM

Has he bank accelerated the payments yet? If yes, they can write a letter assigning the equity of redemption to the lender, and the lender loses the right to sue for the debt.

https://www.canlii.org/en/ab/abqb/do...&resultIndex=3

This would at least keep their credit reports from being harmed, and will possibly keep them out of bankruptcy.

amosfella · #6 08-18-2019, 05:02 PM

Quote:

Originally Posted by amosfella

Has he bank accelerated the payments yet? If yes, they can write a letter assigning the equity of redemption to the lender, and the lender loses the right to sue for the debt.

https://www.canlii.org/en/ab/abqb/do...&resultIndex=3

This would at least keep their credit reports from being harmed, and will possibly keep them out of bankruptcy.

Now, you asked for experience. I have experience with this one. It did not work. However, the circumstances were different than what you described.

The fellow we were trying to help was in bankruptcy. Not just contemplating. I believe 2 years in.

We sent an assignment of the equity of redemption to ATB, and to the forclosure judge. (the forclosure was in a different case from the bankruptcy). The judge rebuffed it and said that it wasn't relevant to the matter at hand. So, a second time an assignment was done, and a copy sent to the judge. This time the judge responded by saying that while in normal foreclosures the assignment would be relevant, the man being foreclosed upon did not have the Equity of redemption as he had assigned it to the bankruptcy trustee when he entered bankruptcy.

I had the idea to put a petition into the bankruptcy case to have the judge compel the bankruptcy trustee surrender the equity of redemption on behalf of the bankrupt, but that was never taken further than the idea stage, and I believe that the time for doing that is over at this point.

pikeman06 · #7 08-18-2019, 05:23 PM

If you are in a town with high water table issues and it's a given that the place is toast put it up for tender if the bank will let them, to get the bank paid up. Maybe in 5 or ten years either one of them might have a chance at another mortgage. Not a good situation at all but we can all rebuild, just get to work. What about the children is what I would be concerned about. 20-50-100 grand is nothing these days. Certainly not worth fighting over. Maybe they could be civil and at least one of them would have credit moving forward for the sake of the kids. Bend over folks. That's how she goes. Get a lawyer involved and he gonna get it all. If it was millions it would be different. Just my opinion. Been there a couple times. Think ahead. Tomorrow is another day.

bessiedog · #8 08-18-2019, 05:29 PM

Whoa...! Posted wrong thread! Very sorry.

sns2 · #9 08-18-2019, 05:46 PM

Quote:

Originally Posted by bessiedog

Whoa...! Posted wrong thread! Very sorry.

I read it and thought the CR must be flowing heavy in the Pass. LOL.

Cement Bench · #10 08-18-2019, 07:25 PM

Quote:

Originally Posted by amosfella

Has he bank accelerated the payments yet? If yes, they can write a letter assigning the equity of redemption to the lender, and the lender loses the right to sue for the debt.

https://www.canlii.org/en/ab/abqb/do...&resultIndex=3

This would at least keep their credit reports from being harmed, and will possibly keep them out of bankruptcy.

Depending on the bank

Cement Bench · #11 08-18-2019, 07:28 PM

what did the appraisal says

market value, forced sale for terms and forced sale for cash values

and almost always the foreclosure is handled by what is called a master not a judge

the foreclosure god or goddess as the case may be in 2019

Op pm me for my phone number to discuss further

RandyBoBandy · #12 08-18-2019, 07:30 PM

Quote:

Originally Posted by bessiedog

Whoa...! Posted wrong thread! Very sorry.

Just say 3 Hail Mary's and your sin will be absolved...If you don't do that, your Soul be be immediately changed to a FLAMES fan

TBark · #13 08-18-2019, 07:40 PM

Thanks folks,
More info will be known of my family member situation by mid week.
Then I can relay some info via pm to those kind enough to offer advice.
Thanks again.

TBark

bessiedog · #14 08-18-2019, 07:46 PM

Geeze
Sorry Tbark

My thread was directed to that rude fellah in TC’s thread.

Hope things turn out well.
I know a guy who’s clumsy with Fire if that helps at all.

Bonescreek · #15 08-18-2019, 07:50 PM

Not related to OPs example but ..

Forecloser when the Bank calls the note is no joke only BS.

From personal exspireance ..

After putting 39,000 cash down on a mortgage for 104,000. at 6.5 percent.

And then paying monthly payments at 650.00 + home owners ins. across
10 years, then I get behind 3 months, no job, then I get a job but they
hold back 2 weeks salary, then on the 1st week of the 4th month overdue I
offer up the total cash for all the payments behind to the bank.

They refuse my money unless I pay the total mortage in full, and list my house for sale in the local papers as a fire sale. They sent my a notice via us postal service that I had 14 days to respond with the total motgage amount.

Mean while the went ahead and listed the fire sale on the local realitor market
and local news papers.

And you wonder why people fly airplanes into building and commit suicide ?

When it comes down to money and greed there is no end to it.

When ever I watch an old western movie about John W. or Mat Dillion or others who tried to step in an help keep somebodys family farm from being
unjusted fore closer, from back in the day.. yea it's just a movie but I can
tell yea things like that have not changed. They still go on today.

Dewey Cox · #16 08-18-2019, 08:40 PM

My guess is Coronation.

Bonescreek · #17 08-18-2019, 08:57 PM

Sorry about my ignorance, Dewey, but is Coronation kind of like
an financial exorizum performed by a Priest ?

I'm thinkin' blare whitch project here.
Not to be confused with "blair whitch project".
Diff. between the Prodistant and Catholic text.
Old and older testament. None of which is new.
new --> + k = knew. They don't want you or me to understand
the written word so they can keep it a seacrite and mysterius
thing that only they would no. ( no -> = know).
The above is how hyrogriphics are made and why.

And a lawyer or pollotician could not have said it better.
Unless they carved it in stone in the Greek speak.

pikeman06 · #18 08-18-2019, 09:21 PM

Quote:

Originally Posted by Dewey Cox

My guess is Coronation.

I was going with forestburg. Bahaha. Buy a whole street for 100 grand right now.

Bonescreek · #19 08-18-2019, 09:37 PM

In all seriousness, I did laier up and declared backrupstey and it cost me
to do so 286.00 a month plus the 650.00 monthly mort. payment for the next
five years.

That's what bankrupsey does for you.. add on an additional 200.00 to 300.00
more a month to make your next 5 years of mort. payments.
The help they offer is make you pay instead of 650.00 a month over more time,
1000.00 a month for the next 5 years.

That's how bankrupsey helps you and your family.

I've been in working situations where sometimes HELP is no help at all.
Simply slows you down and makes things worse. Sometimes help is no help
at all.

Did I save the farm, yes.
Did the animals go cold hungrey or neglected, no.
Was the frig. full, never.
Average temp. in the house in winter was below 45 F.

If I was to win a lotto ticket, I would buy Wells Fargo and burn all it's buildings
to the ground.

Of coarse I would chase all the worker out the building first, it's not there fault.

Once they were all out down it goes. :-)

Understand if I did not get a lawyer to start the bankrupsey.
Wells would have simply foreclosed 14 days later.

No choice.

When you sign off on a bank loan the friendly smiling people there are not
really your friends.