Posted on: 26th Jun, 2010 09:47 am
We are in the process of being forclosed on in Oregon. They are doing a judical foreclosure. Because of health reasons we could not stay. We have moved out of our primary residence and have moved to a different state.
What are the problems possible to face with the foreclosure. We only borrowed enough money to purchase the home no other refi's have been done. help us we are not sure what to do next.
What are the problems possible to face with the foreclosure. We only borrowed enough money to purchase the home no other refi's have been done. help us we are not sure what to do next.
The last time I checked Oregon was a non-judicial Foreclosure. Anyhow, once you go into foreclosure it will take your property 5 months to go to sale. Once it is sold, the eviction date will be posted on your door, but since you have left you don't have to worry about that. The bank or the new buyer to claim your property. The foreclosure will affect you for at least 7 years to 10 years max, unless you are able to dispute it off your credit sooner.
What does the anti deficiency law do for people in my situation, and what about the 1099C. We left do to health reasons. How bad will they come after us? thanks for your time.
I thought since they are asking for all funds due and payable that it it a judicial foreclosure. I am so confused and scared I am unsure what to do or think. I dont understand the doc's we signed which is not good at all. How do I know what I am looking at with the paperwork we signed? I appreciate all help I can get.
Hi sarindippidity!
Welcome to forums!
If yours is an anti-deficiency state, then the lender will not be able to come after you for the deficient balance resulting from the foreclosure sale. However, in order to take advantage of this law, the property should be your primary residence and the mortgage should also be primary.
However, the forgiven amount may be considered as your income by the IRS and you may be charged taxes on it. But again, depending upon the Mortgage Debt Relief Act, you won't be liable for paying the taxes on the forgiven amount.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If yours is an anti-deficiency state, then the lender will not be able to come after you for the deficient balance resulting from the foreclosure sale. However, in order to take advantage of this law, the property should be your primary residence and the mortgage should also be primary.
However, the forgiven amount may be considered as your income by the IRS and you may be charged taxes on it. But again, depending upon the Mortgage Debt Relief Act, you won't be liable for paying the taxes on the forgiven amount.
Feel free to ask if you've further queries.
Sussane
Thank you so much Smithsussane,
There is anti-deficiency law in Oregon it was our primary residence, we now rent in Az. It was the only morgage we have. So I need only worry about the taxes for a phantom income. Well that is not so bad I quess I did loose my home. Because they are asking for the full balance of the loan doesnt that mean it is a judicial foreclosure?
There is anti-deficiency law in Oregon it was our primary residence, we now rent in Az. It was the only morgage we have. So I need only worry about the taxes for a phantom income. Well that is not so bad I quess I did loose my home. Because they are asking for the full balance of the loan doesnt that mean it is a judicial foreclosure?
Welcome sarindippidity,
Just because the lender has asked for the full balance on the loan does not mean that your lender has gone for a judicial foreclosure. The lender will have to go to the state court and file a lawsuit against you. The court confirms that the debt is in default and an auction is held for the sale of the property in order to acquire funds to repay the lender. This whole process is known as judicial foreclosure.
Just because the lender has asked for the full balance on the loan does not mean that your lender has gone for a judicial foreclosure. The lender will have to go to the state court and file a lawsuit against you. The court confirms that the debt is in default and an auction is held for the sale of the property in order to acquire funds to repay the lender. This whole process is known as judicial foreclosure.
I am thankful for all info this forum has offered. When would I be able to pursue a new residence? Do I wait until the foreclosure is complete,(sale of the home) or can I go ahead and see about getting set up in a new home?
When is a foreclosure actually complete anyway. Thanks
When is a foreclosure actually complete anyway. Thanks
Hi sarindippidity,
You won't be able to purchase a property immediately after a foreclosure. You'll have to wait for 3-4 years in order to get a mortgage to buy a new property.
Thanks
You won't be able to purchase a property immediately after a foreclosure. You'll have to wait for 3-4 years in order to get a mortgage to buy a new property.
Thanks