We avoided a deficiency judgement....

By
Real Estate Agent with Gold Key Real Estate

 

The last  story for my state representative This one happened in 2011....

Judith and Sam,

Judith and Sam are friends of mine.  I was at their wedding.   Their story is a little different They only had one mortgage and it was for a mobile home on a rented lot.  They bought their home right after the marriage for $59 K… Things were going OK even thought they were paying over $900/ month for their mortgage (payment) and lot rental…Then Sam lost his job.  He was unemployed for over a year.  They did some things to try to keep body and soul together.  A paper route and a home day care business. But it wasn’t enough. Plus they had 4 children.  I heard though the grapevine that they were in trouble and I got involved.  After 10 years of owning their home they still owed $57K on it and it was worth $30 K. Molbile homes are on rented lots are different.  They are repossessed like cars but they are really homes that people live in.  All the laws to protect homeowners do not seem to apply to these people.   I asked 3 0r 4 lawyers for opinions. 

I talked to the bank.  They were most unhelpful.  I tried to get them to modify the loan.  I suggested that they lower the principal and put the mortgage at 8%.  That would bring the payment down to place they could afford.  The banker kept saying that they could afford their mortgage.. They could not…  They had 4 children, the youngest a newborn.   I then suggested a deed in lieu of foreclosure The banker seemed to sneer over the phone line.   I set up a plan with a charitable group.  They had offered help with the deposit and some rent.  I suggested we needed a lawyer to give pro-bono work for a bankruptcy and that the charitable group  would pay the fees.  They could also help with the deposit Time passed and the phone rang.  It was another banker and she offered a deed in lieu of foreclosure and gave them 2 months to move out and $300.  I also had them agree not to go for the deficiency so they did not need the bankruptcy lawyer J.    Despite all of my friends problems the only item they were behind on was the payments for the mobile home. 

Without the negotiation my friends would have been hit with a deficiency judgment and forced to declare bankruptcy.  

 

 

Posted by

  Debbie Holmes

Gold Key Real Estate     Company logo

(208)761-2551 Email: d5holmes@msn.com

To search Boise Homes visit my website

 

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Topic:
ActiveRain Community
Location:
Idaho Canyon County
Groups:
Diary of a Realtor
POSITIVE ATTITUDE for the Weary Soul
Realtors®
The Art Of Marketing You
Tags:
mortagage
mobile home rented lot
unemployment
job
bank
charity
bankruptcy
deficiency judgement
negotiation

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Rainer
343,669
Bill Reddington
Destin Florida Real Estate
Re/max Southern Realty

Sorry but the bank dropping the interest rate to 8% is not helping. Banks are only helpful when you don't need it.

 

February 09, 2012 01:41 PM
Rainmaker
169,004
Debbie Holmes
Gets the job done!
Gold Key Real Estate

In this case I also asked for a principal reductions that I didn't get.   The rate reduction would have brought the home down to the rental value and something the clients could pay....  By doing nothing they got the home back...

February 09, 2012 01:44 PM
Rainer
143,700
Victor Zuniga
Berkshire Hathaway Home Services California Properties

Hi Debbie,

Your friends are very lucky to have you in their corner. :)

February 09, 2012 01:51 PM
Rainmaker
177,110
Erv Fleishman
Luxury Prop Specialist Realty Associates
Realty Associates

Who would have ever thougt this is where we would be?

Help is on the way.

February 09, 2012 01:55 PM
Anonymous
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Rainmaker
169,004

Debbie Holmes

Gets the job done!
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Additional Information

This is a blog about all things real estate (and a few extras). I blog about my buyers, sellers, listings, short sales, the real estate market. I am internet savvy and am trying to learn more skills. I like blogging because I get to share information with other real estate professionals. I can find you a great home in the Treasure Valley. I was the Democratic Nominee for CD2, Idaho for the US Congress. I have two website: http://www.debbieholmes.net and http://www.greatboisehomes.