Expert: Dick Dennis - 8/16/2009

Question
Hello,
     Unfortunately, I am in the process of losing my home to forclosure. I was a care giver for my father for many years and he recently passed away. I cannot afford the mortgage pymts. on my own and I am only on the deed anyway, not the loan.

My question is: I just got the letter where it tells me the loan is in default. They are giving me the option to pay the 200.00 for a loan modification, however I am not on the loan? Should I pay the 200.00 anyway? Would it buy me some more time? Your thoughts?

Last question; What kind of time do you think I have if I do not pay the 200.00 and it is forclosed on? What is the time frame here in Vegas? Any help would be greatly Appreciated. Mr Stroud

Answer
To answer your question more intelligently, Skyler, I would have to know how much is your scheduled payment and the unpaid balance along with the value of the property, based on the comparables in the area. In Nevada, you have approximately six months from the date of the notice of default to the date they actually have you evicted. For the first month, you can bring all payments current by paying all back payments plus charges and fees that may have been incurred. That's the reintatement period.

From that point there is the redemption period and then the publication period, and so on. By the time the house is sold at auction (or reposssessed by the bank if there are no bidders) it is six months. However, Skyler, you are in a good negotiation position and I would recommend you take advantage of it.

The good position is the fact that you actually are not responsible for payment of the loan. So, if it was me, I would negotiate a payment you can indeed afford to pay PLUS have them slice off, say, maybe $20,000 off the unpaid balance of the mortgage (or whatever can be negotiated). Another reason why you are in a good negotiating position is because the foreclosure process AFTER taking possession of the property is an expensive time for them. I am sure they would rather have you stay there and give you the discounts that you can negotiate.

You can also find a good local Realtor who is VERY knowledgeable in the SHORT-SALE process. Simply it is when you put the house up for sale at a lower price that the lender would accept. They will be losing on it, but not as much as if they were to foreclose and go through all the expense of owning a foreclosure and maintaining it. That's another reason why you are in the catbird seat. If you want to respond to me with the information I suggested at the beginning of this note, I can probably help you further. If not, talk to a good local real estate attorney and see what he/she can suggest for you. I do wish you well.

Dick Dennis
dixiedee13@aol.com