DO NOT Walk Away From Your Home
Submitted by Harry on Thu, 02/21/2008 – 01:38.
There are a lot of people out there that are in such dire financial
straits that when it comes to their home they might feel the best thing is to just walk away. After having been served with a foreclosure action from their lender (and having reached a stage of helplessness) often homeowners simply pack up and move out. In my opinion this is never the best idea. In fact it might be the worst idea.
To begin, by moving out you will find that your legal obligations do not end. You’re still liable for taxes – a debt you do not pay nor owe to the lender but rather pay to your local government. If and when the house is in fact foreclosed upon, the general rule is that all taxes will be paid by the bank – even back taxes. However in this environment, an environment in which lenders are going out of business, don’t assume that even an action for foreclosure that has been initiated will be competed. Lenders are in some limited cases walking away. What’s more if they do you could be left with fines and violations for having left your property abandoned. Everything from failing to mow your lawn to garbage that collects in your driveway. Take the case of Emily Trowel moved out in 2002 and then found that the bank never in fact followed through Now she not only has thousands in fines and violations against her but they want to throw her in jail!
What should you do? First, assume nothing. The normal procedures and the normal events are subject to tremendous pressure from the volume of defaults. This is not a normal time. Second, if you are in foreclosure action make sure that you remain in your home and treat it as if you still owned it until the judgment of foreclosure is final. Had Emily Trowel simply stayed in her home she would now own it mortgage free. If you lender folds, or fails to foreclose, you may be the beneficiary of a wind fall. Second, remember that’s it’s only too late to do anything when the foreclosure judgment has been entered. You can always cure your default right up and until the day of the final judgment.
Filed under: bubble, currency, Eviction, foreclosure, GTC | Honor, Mortgage, politics | Tagged: borrowers, government, lenders, taxes |
My husband was left his mother’s house in 2006 all payments were made on time ,I ended up getting ovarian cancer they removed a 12 pound tumor, Iam in remission however I have had extensive back surgeries, and my doctors have rendered me disabled, my husband became ill july17, 07 with a spinal cord injury we have applied for disability, he left his brother to make the payments who we fpund out in feb 08, that he had not made a payment since october o7 we went to court yesterday, and were told to file a grounds for defense, that house should have been paid off 20 years ago it needs a lot of repair, work etc… but it is home we are raisning to awesome kids that do not deserve to be homeless, we went from $4000, PER MONTH TO ZERO, there is no money , we struggle every day, but we are proud people and do not expect hand outs any advice would be great!!!
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