Mortgage Companies Are Taking A Long Time to Foreclose, Isn’t That A Good Thing for Me?

Sep 22, 2011 6 Comments by

As discussed in a previous blog post, it is taking mortgage companies an extraordinary period of time to foreclose on properties these days.  Unfortunately, the delay in the foreclose process seems to be a “double-edged sword” depending on the homeowners’ goals.

Mortgage Company Foreclosing on House

In some cases, it is a benefit to the homeowners, since they may be able to live in their home for a year or more before the foreclosure is completed.  This delay allows the family to stay in “their” home and allows their children to finish the school year in a familiar setting with friends and teachers they adore.  In other cases, it is purely a financial decision.  The delay provides time for the family to save money, since they are not paying the mortgage loan on the house or rent on another property.  When the day comes to move out of the home, the family has the funds needed for moving costs and for the security deposit and rent on the new apartment or house.

On the other hand, the family down the street has made the decision to move on with their lives and have already moved out of the house.  The house represents a negative time in their lives and they want a fresh start in new surroundings.  In other cases, a member of the family has accepted a new job in another state, so they have no option but to move.  These homeowners want the mortgage company to foreclose as soon as possible so this chapter of their lives can be closed.  The family has moved on, unfortunately the house is still legally their responsibility.  These families receive stack after stack of letters from the mortgage company offering workout plans and other alternatives to foreclosure.  On top of that, the homeowners association (HOA) is sending threatening letters regarding tall grass growing in the law, mosquitoes in the swimming pool, and delinquent assessments, dues and fees.  The HOA is threatening to file a lawsuit against the homeowners if they do not pay the debt.  Pay a debt to the HOA for a house they do not live in?  Yes, the HOA assessments, dues and fees are still the homeowners’ financial responsibility until the property is no longer in their names, so the HOA debt must be paid.  As the old saying goes, these families can’t get the “monkey, aka house, off their backs”!

As a result, the delay in foreclosing on a house can be a good or bad thing depending on the homeowners’ goals.  As the homeowners, you can ask the mortgage company to expedite the foreclosure sale but often that is unsuccessful.  You can also look at signing a deed in lieu of foreclose or possibly quit claiming the property to the mortgage company.  These options will be covered in a later blog.

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At Duncan Law, LLP our goal is pretty simple. We try to make people's lives better. And in doing so we try to treat people the way we would want to be treated. It's just that simple.

We practice primarily in the areas of bankruptcy and workers' compensation. We have offices in Charlotte, Greensboro and Winston-Salem, NC.

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6 Responses to “Mortgage Companies Are Taking A Long Time to Foreclose, Isn’t That A Good Thing for Me?”

  1. Caveat Emptor Lawyer Network, October 13, 2011 — Caveat Emptor says:

    […] bankruptcy lawyers Duncan Law says that, in some cases, consumers in foreclosure may be able to stay in their home for a year or more while the process plods along. This can be a good thing, especially if it allows families to save […]

  2. Caveat Emptor Lawyer Network, October 13, 2011 | CAPITAL says:

    […] bankruptcy lawyers Duncan Law says that, in some cases, consumers in foreclosure may be able to stay in their home for a year or more while the process plods along. This can be a good thing, especially if it allows families to save […]

  3. Caveat Emptor Lawyer Network, October 13, 2011 | CASH says:

    […] bankruptcy lawyers Duncan Law says that, in some cases, consumers in foreclosure may be able to stay in their home for a year or more while the process plods along. This can be a good thing, especially if it allows families to save […]

  4. Caveat Emptor Lawyer Network, October 13, 2011 | COMPANY says:

    […] bankruptcy lawyers Duncan Law says that, in some cases, consumers in foreclosure may be able to stay in their home for a year or more while the process plods along. This can be a good thing, especially if it allows families to save […]

  5. Angela Marshick says:

    I got a dale date on my home as being January 18, 2011. When do I really have to be out of this house?

  6. Damon Duncan says:

    Angela,

    It really depends on what course of action you take. If you do nothing at all then the mortgage company could make you leave as soon as the house is actually sold. Typically, you have more time than that but it’s tough to say for sure. We tell many of our clients who surrender a house within bankruptcy that they typically have at least 90 days but may have much more time than that. The reason it’s so difficult to say for sure is because it depends on the mortgage company, the state you live in and the “resell-ability” of your home. It may be wise to contact a bankruptcy lawyer in your area to learn more about what you rights are. Best of luck moving forward!

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