Answer: -  Yes, they can try to collect what they lost.  They could file a deficiency judgment against you for the amount they lost which would require you to pay the amount back in full.  Most people file bankruptcy.  You could work out some sort of re-payment plan over several years or ask them to forgive some of the debt and settle for a smaller amount.

Answer: – Absolutely… I’m sure if you review your paperwork it will tell you that they have the right to foreclose if payments are not made.

Answer: -Tom, I have to make the assumption that you’re planning on or you’ve already stopped making payments on your home or you wouldn’t be asking these questions.  A short sale in my opinion is by far the best option if you can’t sell your home for what’s owed, rent it out or can’t work out something with the bank like a forbearance or loan modification.  A short sale will affect your credit but will eliminate a foreclosure on it.  If done properly will also eliminate the possibility of a  deficiency judgment.  If a short sale is not accepted an ultimately your home ends up at the foreclosure auction, then you will either receive a 1099 or they will file a deficiency judgment against you.  If they file a deficiency judgment and you can’t pay, they can garnish wages.  Depending on the amount of the judgment, this forces most people to file bankruptcy to eliminate the judgment.

Answer: -  It sounds like you made an offer to the bank for less than what is owed on the property, which is a short sale.  And from what you say, the bank accepted the offer but there may have been some other requirements from the initial seller in order to get everything approved.  As a buyer, it’s not uncommon to wait for MONTHS and if you are patient enough it could even be a year or more before you are able to buy a property in foreclosure.  This is all because of bankruptcies, settling with 2nd and 3rd lien holders, uncooperative sellers, etc.  To answer your question, yes, the bank can foreclose on a property even if there is an offer because they are waiting for certain requirements to be met.  Yes, they can postpone the foreclosure auction as long as the bank sees a legitimate reason to postpone.  Don’t give up.  Keep working close with your agent, I’m sure they are on top of the situation…Just don’t be surprised in you have to wait awhile.  Most home buyers get frustrated waiting and move on to another home.  Good Luck

Answer: – Well it’s probably because he agreed to pay a certain amount over time to satisfy the debt.  It’s was either that or they probably told him they would file a judgment against him.  That’s my guess.

Answer: – No, unless you pledged it as collateral in order to qualify for your apartment complex.

Answer: – Typically the opening bid is the amount you owe plus foreclosure fees, back payments, etc.  If someone bids at the foreclosure auction, then the highest bidder gets the property.  If no one bids, the bank takes back the property and sells it through a real estate broker.  If the bank does not get paid the full amount they are owed, they can 1099 you for the difference and count the loss as income to you so you have to pay taxes on it.

Answer: -Well it depends on your states laws as to how much time you have until you have to vacate your home.  If you live in a trust deed state where the redemption period is before the auction, then you’ll have a few weeks to a month to leave your home.  If you live in a state where foreclosure is filed judicially, typically the redemption period is after the auction so again depending on your states laws and redemption period after foreclosure, it could be a few months up to six months.

The best way to find out how long after foreclosure until you have to be out of your home is to call up a title company and ask them or you can visit your State Laws page and see when you redemption period is.

Is this allowed or legal, can a new servicer attempt to collect on the Heloc since the home has already gone into foreclosure? Should I meet with a lawyer or am I okay ignoring these letters?

Please advise and thanks for your time,

Aaliyah, Gilroy CA

Answer: -This is normal protical and yes since your loan was “sold” to a new servicer, they can try to collect the debt.  So they will send you certified letters in the mail every month telling you how much you owe and that it’s an attemt to collect the debt.  You don’t need to respond unless you are disputing the action and I’m sure they will try to call you every week and threaten you to pay…or else.  By sending these letters, it gives them the right to proceed with foreclosure if they want.  However, we all know they won’t unless there is substancial equity in the property.  More than likely they will just write it off as a loss and 1099 you for the difference.

Answer: -Nomi, the California redemption period is approximately 3 months and begins after you receive the notice of default.  Typically you won’t receive a notice of default until you are at least 3 months behind on your mortgage, especially now, banks are slower issuing the notices of default because they don’t need any more inventory.  So you’re about 6 to 8 months out from foreclosure, if it goes that far, so you do have several options as a homeowner.  Unfortunately Obama’s HAMP program hasn’t turned out the way we had all hoped, however there are alternatives.  Assuming you want to stay in your home, one option is a loan modification. This is something you can do yourself or you can hire an attorney to do it for you…just be careful in choosing the right attorney that really does care about your situation and will guarantee their work. Another option is to sell your home, if it has equity, and move into something smaller or less expensive until things pick up again. If your home does not have equity and a loan modification doesn’t work, you could try to do a short sale where a buyer offers the bank less than what is owed on the property. Whatever you do, don’t give up.