Foreclosure, tax sale pending

The taxes has to be dealt with asap as saving the house would be a moot point.Now the question is will she be able to pay next year's taxes?If not going through the refinance is not going to work.Not to be harsh but she is going to have to confront her credit sooner or later.Is there anyway you can help,or her family?She has 2 weeks to pay the taxes before the sale.

 

Have her consult with a bk attorney.

 

I filed a chap 7 however before that i had lost my house my condo just to pay medical bills,So we ended up with 1100 a month income,my DH had 1000.00 a month in medicine,Well i found help on line with free med,I made a deal with a oxygen supplier for him.Learnt to shop better.Now he's on medicare things are much better now.but it takes hard work.To point out on her taxes what about next year?I know it would be hard to lose her house.But one day I looked in the mirror and said this isn't working.My DH worked himself to near death to try to pay everything and in the end it wasn't enough.If she's in it for the long run she is going to have a long struggle but it can be done.In today's economy its going to be harder.so you guys as a couple have to decide in what direction you want to go.

 

Probably should call back on Monday during business hours. When someone is afraid to talk to someone, they can delay until the business closes. She should steel her resolve and call.

A BK should stay the courts' actions, but is that the best thing for her? What other debt does she have to deal with?

They'll want money from her. They likely have a mortgage to pay too. But she needs legal advice so paying some money for that is sensible. Dumb Bob figures she should see a few lawyers for free consults before paying for the real deal so she can flesh out the questions she needs answering. If she's not prepared, going to someone by the hour isn't cheap.

A long time ago she needed to get a house mate or two to share the cost of the mortgage. That's the traditional way to keep the house when incomes go down. There's also taking extra jobs and reducing spending.

 

Why is it that when people are already in a deep hole others want to suggest that they dig their hole even deeper? That is something I have never been able to figure out. Debt consolidation, mortgage elimination, bankruptcy and other such scams only serve to put people in worse shape than they already are. All are expensive so those who have little or no money can't afford to do any of those things and none of them will save the home from the tax man. Nothing will save the home from the tax man except cash and if the homeowner can't come up with the cash the lender will most likely do so.

Failure to keep up the taxes and insurance not to mention failure to meet payments in a timely manner usually constitutes a breach of contract giving rise to a foreclosure action against the homeowner. Mortgage foreclosure action by lenders can be defeated. It is being done with ever increasing regularity all across the U.S. as more and more judges are becoming aware of the gigantic scam perpetrated upon the American people by the mortgage lending industry, but no illegal or nefarious action by the lender will mitigate the fact that the homeowner failed to make the payments as agreed.

In the current situation somebody has to come up with a substantial amount of cash or the home is gone. Somebody has to be willing to put up not only the tax money but the money to meet the demands of the lender which is going to be much more than seems apparent at this time. Maybe several thousand more than what she seems to be behind.

Bankruptcy would cost at least 2 to 3 thousand and is unlikely to save the home from the lender. I've known several people who have tried it only to lose that cash too and the home as well. All that was accomplished with bankruptcy was to stave off the inevitable for a little while longer.

How to save the home from foreclosure once the tax man has been paid depends on whether or not the home is located in a non-judicial foreclosure state. If the home is located in a non-judicial state such as California, Arizona, Georgia, and many more the odds against a successful defense are much greater than in a judicial only state but in either situation a mortgage fraud investigation is essential to a successful defense. That can cost anywhere from $500 up to as much as maybe $2500. The only difference in how much it costs is who is hired to do the job. I know of a man in Arizona who will do it for about $500 but no guarantee as to how long it will take to get the results. Probably several weeks or more. I know a man in MD. who will do it for $1,000 and guarantee results in 7 days. I also know of a group of people who do a lot of advertising claiming to be able to save the home. The fraud examiner claims to be certified by some organization and to be able to go into court and testify as an expert witness. That fraud investigation costs at least $1500 last time I heard and apparently without any hope of ever getting an actual fraud audit report. The party doing the advertising has two web sites telling people how to beat foreclosure but is in foreclosure himself and is filing BS arguments in the court hoping his nonsense will save the home. It simply isn't going to happen. The so called expert can't even save his own home from foreclosure but wants others to believe he can save theirs and pay him handsomely for his efforts.

Even if a fraud audit is obtained it will do no good in local court since, as usual, the only question before the court is whether or not the defendant owes the money and the outcome is almost always the same. Arguments about notes are highly publicized when they happen to work but nobody talks about how many times that argument failed. A somewhat educated guess might be that no note arguments might work is maybe 1% of foreclosure cases if that.

The only realistic hope of a win is get a mortgage fraud audit from a reputable auditor then use the results in a federal case against the lender. That can work if the fraud audit is favorable to the homeowner but even then it is unlikely that the homeowner will get his house for free.

But the most important thing of all to learn is the following: If you are in a deep hole then for Heavens sakes don't do anything to dig it any deeper.

 

Cap 1 in a earlier post to them i did say the taxes had to be paid if they want to save the house.And i did say that they should consult a bk attorney to see if its advisable,i know in some cases its not.Maybe you have the means and intellect to avoid all those things that you don't believe in doing.However not everyone has those,so they have to turned to other means.Personally i thing if you can do all the things you say that would be great,however this is not a perfect world.

 

My contention is that unless you are a corporation it is never advisable to file bankruptcy. If you are a corporation and you are too deeply in debt then you may have no other choice. As can be seen in the cases of K-Mart, General Motors and probably hundreds if not thousands of other instances bankruptcy may not only be the best answer but might very well work out to be the best thing they could ever have done. All depends on whether or not you are too big to let fail. If you are so big that total collapse and failure would adversely affect the economy then they probably won't let you fail completely. They will make everybody else pay for your mistakes and your ability to keep on making the same foolish management errors or even worse ones in the future. If you are a little peanut then bankruptcy will kill your company. But for the private individual it is not the best way to resolve your problems in my opinion.

Everyone has those means at their disposal. Most people deeply in debt and with little or no income do not have the means to file bankruptcy and it may not even be worth their time and trouble if they only owe a few thousand. Everyone with an IQ of 70 or greater has the ability and the finances to learn how to fight effectively and win without using bankruptcy or debt consolidation companies. All it takes is the will to win.

That is precisely why the little man can win in court without having to hire lawyers if he chooses to do so instead of just rolling over and taking it on the chin. The United States Supreme Court ruled in a famous case that it is the duty of every citizen to know the law. That decision came down way back in the 1800 era. Ever since then lawyers have been doing their best to ruin the truth of that statement by the court and doing a great job of it too. (LOL)

 

Cap1 you do understand that when you have a debt of $500,000 and no income and not much hope of one because of medical problems and age your painted into a corner with non drying paint and the any choice you have is bk,or judgements.Half a millon dollars is a lot of debt to over come.

 

Quite so. Yes, that is a pretty fair amount of debt. But the key is that if someone has huge medical problems, advanced age and deeply in debt then that person is virtually judgment proof unless s/he has a large amount of assets. Persons in that situation will have little or no future need to use credit nor the ability to rebuild their credit even if they wanted to do so.

Since retirement income cannot be garnished or levied by federal law and debt collectors cannot even threaten to take retirement income then they are pretty safe from the effects of garnishment. So why should they use what little income they have to pay off old debt? Morals? That isn't a valid argument because bankruptcy does not eliminate their moral responsibility to pay their debts. The best it can do is make it difficult or impossible to force the person to pay what they owe but cannot erase the moral responsibility to pay one's creditors. Indeed, someone in the financial condition you depict is not painted into any kind of corner. Far from it. Spending a few thousand on BK is not going to help their situation but rather will only make them poorer.

 

Cap 1 i must be the exception to the rule,after doing that I'm in better shape than before the bk,plus my credit rating is higher,the stress of the debt has been removed for a 1000.00.But it wasn't easy at first.

 

I can understand how that is possible but were you $500,000 in debt, aged and in poor health when you filed? Also when did you file? What year?

 

Over 60 and 2007.Yeah i know now, but it was my spouse.And most accounts were joint and I'm a few years younger then he is(just as sarcastic as him he was the teacher).

 

You were extremely fortunate to get by for $1000. I just spoke to a man this morning who filed BK a while back. The case has been dragging on for a considerable period of time. Two or three years. He has to pay $700 every 3 months just for the referee's fees. He spent $3,000 just to get it started. He has about a dozen judgments against him because most of his credit cards were used up trying to keep his corporation afloat. He is in deep problems with one of them now. Discover card who has a judgment against him on two accounts. He is over 60 and disabled but don't have any pension. They filed a subpoena Duces Tecum on his wife and a friend trying to find out where they might be able to get some money but they aren't going to get anywhere with that. All they will accomplish is causing his wife a great deal of inconvenience.