I have been having financial trouble for some time. Iâ??m looking at foreclosure or bankruptcy. I have been told by some people that if my house is foreclosed on I can loose my driverâ??s license. Anyone know if this is true? I live in Illinois
I have never heard of this either. The guy who told me is a cop, and claims the judge can order this during a foreclosure, especially should I not make any attempt to pay on the debt. He is also trying to make me a deal on the house.
Tell him to cite you the relevant Illinois statute! This may be his motive for telling you about this (law?) Maybe a call to your local civil court clerk and or the department of motor vehicles will answer this
This was my first thought too, that I was being told a story. I know two other cops, both related to me, who also told me the same thing. Still, it sounds a little fishy. The only civil matter I have ever heard of that your license could be taken for was failure to pay child support.
Re: Loss of driver?s license for debt Sounds fishy. Check with your department of motor vehicles. One scenario that might result in loss of license is if the forclosure damaged your credit, as a result your auto insurance canceled you, you didn't put in place other coverage, and then you drove without coverage and had an accident. But this is a whole series of ifs. Are you trying to sell and working with a good real estate agent? Sometimes negotiating thru a third party who has a feel for what property is worth in the market and how fast things are moving can help sell at an equitable price, and keep the negotiation and sale progressing. They can also help screen out bad faith offers that might force you into selling on unfavorable terms. You might also need to work with a BK attorney if necessary to hold off the forclosure until you can sell. When you are backed in a corner, and it is obvious, all sorts of sharks can start appearing, willing to take the problem off your hands. You've seen the TV advertising. Your best defense is good professionals on your side, and multiple offers to ensure a sale at market.
Re: Loss of driver?s license for debt A bankruptcy judge might be able to order all sorts of things, but why would it be in the interest of your creditors for you to lose your license, particularly if it would affect your ability to work and pay creditors. There may be some states with laws that affect registration or license renewal if you don't pay your child support, but bankruptcy is in federal court, not state court.
Re: Loss of driver?s license for debt Well the people said if it came to foreclosure, not BK, my license could be taken. I really don't buy it but as so many things now can cost you your license I thought I should check. I kinda think they are trying to motivate me to accept their deal on the house, which might be alright but not in my current circumstances.
Re: Loss of driver?s license for debt Something else regarding this. This guy knew exactly how much I owed on my house, said the lady at the bank told him. Also told me information regarding the foreclosure, when they planned on doing it and why they had not already. Is this something that the bank is allowed to do, are there any privacy issues here other than the fact that I didn't care for it?
Re: Loss of driver?s license for debt Unless this was just a case of someone misinformed, it might give you a clue of what you might go thru if you tried to negotiate a sale with this person under difficult conditions. What else might he pull? Are you working with your lender to try to stay out of forclosure, or sell?
Re: Loss of driver?s license for debt What about a short sale? I did this. had a buyer, but not enough time. So I negotiated a short sale. I did have an attorney draw up the final papers. The sale recorded 15 minutes before my deadline was up. It was much better than BK. On my credit report it is listed as forclosure proceedings, since it never actually was foreclosed on. My FICO at the time was 450. Now, a year and a half later it's 600 and I just refinanced a different house. If I had chosen BK, I would still be digging out from the mess.
Re: Loss of driver?s license for debt I wish that I could avoid BK but right now I just don't see anyway to. Sudden major illness, lost my job, no more insurance benifits, living with relatives, tons of bills, and the list goes on.
Re: Loss of driver?s license for debt It seems strange to me that a cop would seek out someone out of the blue who is in danger of foreclosure and tell them that if their house is foreclosed on (a house the cop is trying to purchase), that the state will take retribution for a civil action by revoking a state license. Meanwhile, why is this cop out trying to collect forn the mortgage holder when he could be out looking for crack dealers? Either this cop has a vested interest in you making payments on the mortage (he could be moonlighting as a collector for the bank) or the cop has way too much time on his hands.
Re: Loss of driver?s license for debt Thanks everyone. Anybody have any thoughts on the privacy issues I mentioned?
Re: Re: Loss of driver?s license for debt Ok, this cop is friends with my relatives, close relative, who are also cops. He also does some contract work (repairs, maintence,etc) with the bank that has the note. Apparently this cop is getting divorced and will need a new house. His deal is this, he will give me just over half of what I owe on the house, plus 5 grand under the table. Then I will refinace the remaining amount. He get's the house and I avoid foreclosure. According to him he has spoken with the bank and they agreed to this. The whole deal sounds funny to me. I mean I'm already in debt up to my eyeball, what if I BK after taking this loan? Will they come after him for the house and then me? It sounds risky to him so why is he doing this?
Re: Re: Loss of driver?s license for debt What is the house worth in your market, how much are the mortgage(s) encumbering it, how much equity do you have, and what is your loan to value? Where would this deal leave you?
Re: Re: Loss of driver?s license for debt How do you finance the remaining, and then he gets the house work? Is this some separate loan to pay off the mortgage, but is not against the house, and you are left with it after the sale of the house? Why doesn't he just buy the house?
Re: Re: Loss of driver?s license for debt That's something I don't understand. Like I said this whole deal sounds a little funny to me. He claims that the bank people have told him they plan to sell the house at a sherrif's sale after foreclosure for about half of what is owed. As far as the equilty I don't know, property has lost value here the last few years and when I bought it the prics were up. This would leave me with no house and a monthly payment still.
Re: Re: Re: Loss of driver?s license for debt I have not talked to the bank people yet and really wonder if right now they would finance me for anything.
