Expert: Dick Dennis - 7/8/2009

Question
QUESTION: The home that was left to myself,a brother and two sister's is for sale. The home's mortgage payments are back two payments,60 days and may possibly go into 90 days past due and then we will be looking at foreclosure. Due to unfortunate job situations and unemployment issues the payments have not been able to be met on time.The realtor has advised us that he can write a letter to the bank and explain to them that the home is up for sale. Would this stop a foreclosure?And if so for how long? What would be the requirements from the bank that have to be met? Would they have control as to when and how much the home will sell for? I'm worried that a sale may be forced at just the amount that is owed on the mortgage ,about $88 thousand. And the agents cost/fees?The home has been in our family for 43 years and it is appraised at about 600 thousand+.
Due to the loss of income and not being able to make the payments on time and being near 90 days due I am very. concerned.

Thank you,
Concerned

ANSWER: Regarding the property being in danger of foreclosure, I would need to know in what state the property is located. But I will answer what questions I can. It depends on who the lender is whether you would be successful in delaying any foreclosure action. If you have a knowledgeable Realtor, that person would know that. Banks have all kinds of experiences from people who contrive ways of holding up a foreclosure action. So they don't.

Further, when the bank sees the possibility of the property being worth so much more than what is owed on the mortgage, you can be assured and I can guarantee you that they will not wait one minute in delaying that foreclosure. Further, my guess is that you probably have the property listed for a higher price than you should. That is if you want to get away from losing it in foreclosure.

The bank (actually their asset manager and REO manager) would have total control over what that property would sell for at a foreclosure sale. Since the property has a value of so much more than what is owed, the foreclosure would no doubt have a true auction action. If it makes any difference to you, whatever amount the property sells for OVER the mortgage balance must go back to the former owner (you?).

Where is the property located? I might be able to find you someone who would buy that property and take the headache off your hands reasonably. I do wish you well.

Dick Dennis
dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Aloha Dick,

Thank you for you prompt response.
The home is located in Hawaii on the island of Oahu. The city is kaneohe,Hawaii 96744
The for sale price is $599,000.00. The mortgage balance is about 88+ thousand dollars.The balance due to bring the payments up to date is $3,600.00+ dollars. The Bank that holds the mortgage is Bank Of America. When my mother died 10 years ago she left the house to four of us siblings in a trust.We are now owners/tenants in common.
It will be so sad after all these years to lose it in a forclosure/sale like that.

Mahalo (Thank you) again for your time

Answer
It seems that I can help you so that you do not lose the house, but I now need to get more information:

1. Describe the house to me (how many bedrooms, baths, location, etc.). 2. What is the address? 3. Who lives in it? 4. After the $3,600 is paid off, what is the monthly payments? 5. What is the name and phone number of your real estate agent? 6. Are you more interested in keeping the house or are you more interested in not losing the equity that you think you have in the property?

If you want to correspond directly with me, use my email at dixiedee13@aol.com. And finally, what is your name?

I do wish you well.

Dick Dennis
dixiedee13@aol.com