Expert: Marvin G. Bobbitt, III - 3/27/2011

Question
QUESTION: Hi,
I'm not sure how to word this but here goes-
My mother lives in a condo for which the tax value is about $5000 less than she owes on it. She has wanted to get out of it for a long time, but no one is buying these condos and a lot of them are ending up in foreclosure. Neither of us is at all knowledgeable about real estate; we wouldn't qualify for and can't afford to pay for two mortgages, so I'm hoping you can tell me if there are any options for getting rid of a property like this and paying off the loan so she can find something a little more liveable. I'm afraid if she lets it be foreclosed on, it will ruin her credit and she will not be able to get another loan.
Thank you in advance for your time.

ANSWER: Thank you for your question. The first thing, tax value and what she owes have nothing in common.I would suggest you interview a qualified real estate agent in your area. Ask that person for ideas and opinions, you may want to interview several to get the right feel of what you want. As for foreclosure, speak with a qualified Attorney who does bankruptcy. I hope this has helped you. If not please write me back.

Good luck. Have a good day.

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

QUESTION: Thank you for responding.  
Basically I want to know if there are any outcomes for property in NC other than a traditional sale or a foreclosure. For instance, would a lender ever buy property back if it thinks you might walk away from it? And what about the ads "We buy ugly houses"-are these usually scams or are some of these companies legitimate? Or maybe there's something I haven't thought of that could help in this situation?
I would like to just know a few possibilities before I try to get a real estate agent involved (and I expect that to take awhile since an agent  will realize there is no money to be made).
Thanks for sharing your thoughts.

Answer
Thanks for your question. Yes the lender will buy back property at the foreclosure steps, too protect their interest. The foreclosure process usually is not too nice. Names in local paper, sheriff delivering papers to the address, notices posted, etc. after that the home is sold at the steps. If you have not left the property after sale at steps,the sheriff returns and post a writ of possession, notice to vacate, he also ask you too leave NOW,if you don't leave,  you are trespassing and could be arrested, also you can not enter the property without escort from bank representative , further all door locks are changed and property is secured, you have 10 days to get your personal stuff. I would try too avoid this process. As for we buy homes, I am not familiar with this practice, other than they buy distress properties at low price, be careful.From what i know, these are investors looking for a deal.

I would look at what you owe vs what it is worth. I also recommend you seek a good bankruptcy Attorney 1st, get their opinion and advice. If you cant afford an Attorney, Some counties offer legal aid services. I would inquire ASAP.

Also keep in touch with your lender ask them how they can help you, DON'T IGNORE YOU LENDER, it makes things worst, be honest with them. Keep in mind there are many others they are speaking with. I have seen time where the lenders did work with customer. Also seek a qualified REALTOR as mentioned earlier, to get current value.. It cost you nothing to get a market value.. Good luck.