Stupid Mistakes to Avoid During a Foreclosure
You have known it was coming for a few months now. The mortgage payments on your home have become more difficult with each passing month. One day in your mailbox you find a notice from your bank saying they are going to start proceedings towards a foreclosure if your back payments are not paid in full.
You know paying your bank back in full is impossible. If you had the money you would have paid them when the payment was due. Honestly, you do not have the financial ability to pay the bank now. In fact, you don’t see how you can ever pay the bank. There is in your eyes no way to avoid the pending foreclosure.
You think you will be a “stand-up” borrower and do what is right. You send the keys to your home to the bank, you move out of the house and you stop your mortgage insurance. You don’t want to cause the bank any problem and instead give them what was used as collateral for the money borrowed when you purchased the home.
Will this action get you off the hook with your bank? No this will not get you off the hook. Without a written document from the bank stating you’re release of any and all liability they can sue you for any problems that may occur to the vacant home until title changes to their name.
What is commonplace today for vacant homes in pre-foreclosure, there are many homeowners complaints filed with the City, County or Homeowners’ Association against homeowners like yourself, i.e. not being maintained; nuisances such as the grass not being mowed or worse, kids throwing parties; maybe back homeowner fees are still due. These are but a few examples of the homeowner’s continued personal responsibility and causes for possible future liability.
Understand if you are still on title, you are still personally liable for all civil, financial and criminal liability for failure to keep up you home; civil liability for any person injured on your property; financial liability of unpaid homeowner dues and fees; and any criminal act, which may happen on the property even if you are not the one doing the act. Walking away does not relieve you of any liability, period.
The solution is simple. Until you are off title, you are still liable. As long as you are on title, you need to keep paying your homeowner’s insurance premiums. You need to protect the property from illegal uses. You need to keep your home so it does not become a public nuisance. Do this until the title to the property is no longer vested in your name.
It may seem like a hassle, however, if you follow this simple step you will prevent yourself from a serious hassle down the road. Foreclosures are a very difficult time for homeowners both financially and emotionally. But don’t down hearted, if you protect yourself and relinquish your home properly. You can get on with your life and be able to bounce back in future years regaining what you have “lost” now.
Keep this mantra in mind…this too will pass. You’ll be OK.
If you would like to talk to someone about other options that may be available to you please feel free to call/text/email me from my signature below. I will help you any way I can and if I can I will steer you in a direction where someone may be able to help you.
Now you are ahead of most pre-foreclosure homeowners. You will be able to know the Stupid Mistakes to Avoid During a Foreclosure. Thank you.
Tags: Foreclosure, housing, Real Estate, Redwood Shores, san mateo county, sfbayhomes.com, Short Sale, sotheby's