Post-Foreclosure Frequently asked questions.

Here at MLReport we receive messages all the time asking about what to do when they have gone through a foreclosure. We get a lot of frequently asked questions and by no mean do we have time to answer all of them in just one post but we will do our part to start documenting some of these questions and concerns.

Foreclosure has occurred: What does this mean?

The investor that the loan servicer represents has chosen to proceed with the foreclosure process which ends with an auction date where the home is sold to either a 3rd party or bought back by the lender.

Is the house now in foreclosure?

Once the house has made it to a sale date, the investor has decided to proceed with the auctioning the property, which means that it is actually now in past tense and the property has been, “foreclosed on”. Foreclosure is a process that ends with an auction date.

How long does a homeowner/tenant have to be live in the house after foreclosure?

This varies greatly from state to state. In some counties someone may have as little as a few days while in other states this can vary and be around 30-60 days. It is always important to check with local laws and regulations. During this time the lender may even be offered those still living in the property money to move. This is often called “Cash for Keys”.

What does this mean as far as what happens in a foreclosure situations?

The first part is the ownership of the property has been transferred to the bank or 3rd party purchaser. Second part is they will try to sell the house but not before the people that live their now move out. In some states there may be a redemption period; check with local laws and regulations. Then an agent will market it and sell it possibly after doing some work to the property.

Will my lender hold us accountable for the loans, property taxes, etc?

What we can say is it is our understanding that the property taxes are attached to the property and they will be paid when the home transfers from the Bank to the their end buyer. Loan wise, if the first mortgage forecloses it is really important to understand via what method the foreclosure was completed. A non-judicial foreclosure opens up the lender to pursue certain options that may not be available via a judicial foreclosure and vice versa. Second mortgages have different statutes to limitations and may vary greatly but due to current market conditions with all the negative equity that is currently going around. Generally. unless a homeowner is contacted in some format being told that they still owe them money, many times they are fine. It is important to always check your credit to see what comes up and just as important it is something to understand that there is a statue of limitations while in state such as California it may be as long as 4 years. Other states times frames may vary.

If they do contact the homeowner that they owe some money they may have to request that they find a settlement with their previous lender. Generally this amount tends to be around 10% but it has to be paid all at once to whoever is doing the collection efforts for the prior bank/lender/investor.

What does REO mean?

Real Estate Owned means that the home when it went to auction and no one bought it so the lender bought it back.

Loss Mitigation Advocates @ Absolute Consultant Group

MLReport.com started in the Loss Mitigation industry in early 2000's. We worked for the one of the largest loan servicers in the US in their loss mitigation/foreclosure department. Speaking with approximately a work flow of several thousand cases a month and several years of experience they created an organization dedicated to helping homeowners. Our Goal here is to increase the accuracy and awareness of loss mitigation information found on the internet while creating a forum for homeowners and professionals alike to find the information on up to date mortgage servicer/lender guidelines. — MLReport Management Have a question? Call us 888-934-3444

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