I just missed my first mortgage payment. How long do I have before the sherif sale? Will I get a deficiency?
Here’s the full story. I bought a house in Nevada in April 2006, I was straight out of college and making pretty good money. Everyone I talked to told me to buy a house instead of renting. I trusted everyone and went ahead and did it. I bought the house with 2 loans. The first is interest only and the second is a really high interest rate with a 15 year balloon. I was told by my broker that my house would appreciate quickly and I would be able to refinance or sale in a few years.
Now for the tricky part, my fiance had to move to Oregon for school in August of 2007. I decided to do the responsible thing and stay in my house and keep my job. After a year of living alone in my house and being miserable every single day, I decided to move to Oregon as well. I knew it was going to be tricky financially, but I was willing to take the risk because I was seriously MISERABLE!
I was able to rent the house in Nevada but the mortgage is twice as much as the rent. So I loose about 00 a month. My new job makes about half of what my previous job made, and I have to rent an apartment here in Oregon. I’ve been working really hard to make it work out but it is now obvious that I can’t keep relying on my small savings to bail me out every month. I have decided to stop paying on the house because I’ve almost exhausted all of my savings and my income is not going to go up. I don’t plan on moving back into the house anyway. I honestly don’t want it anymore. I want to cut my losses.
I have perfect credit and no other debt. Not even a cent of credit card debt, no car payment, and I already paid off my school loans. I’m 26 years old. I know this is going to ruin my credit, but I feel so burned by this whole ordeal that I don’t think I’ll ever apply for any kind of loan again! I know it will take 7 years to repair my credit, I’m ok with that because I’m only 26.
So my question is: how long is it really taking banks to foreclose now days? I’m sure they are swamped, I read that 1 in 74 homes in Nevada is in foreclosure. Also, how likely is it that I’ll get sued for a deficiency judgment. Like I said before, I have no debt but I also have no assets so I’m not worried about anything but getting my wages garnished.
I should also mention that the house has lost 0,000 in value.
6 Responses
godged
08 Feb 2010
golferwhoworks
08 Feb 2010
ok so working a second job and honoring your commitments is not an option. then just wait all that you said is true and will come to pass
Southern Gentlem
08 Feb 2010
Talk to your mortgage companies, You may be able to voluntarily give up the house and not suffer that bad a hit on your credit. Hopefully you have learned to stay from these types of sucker loans.
jpolster2008
08 Feb 2010
This isnt your fault. Its the economy’s, so blame George Bush. I would sell the house. if you cant sell it, see if you can give it back voluntarily.
stumpu2
08 Feb 2010
Wow! And it’s 10 years for a foreclosure. So you will be approaching your 40’s by the time it clears. Because it will be 10 years from the time it’s said and done and it will probably take up to 2 years to finalize which will make you 28 so 38 it will start to fade off!
FreakyGeeky
08 Feb 2010
F the guy saying to honor your commitments. If the banks weren’t getting all this free money because THEY screwed up, he’d have a point. But until the gov’t is knocking at my door to help bail me out, I could care less about "honoring my commitments" just as the bank does.
To the OP, the exact same thing happened to me. I bought a forclosure in ‘06. At the time my husband and I both worked for a mortgage company in the appraisal department (doing HONEST WORK). We also had a side service business. Bought the house in 06 with plenty of money. I also bought the house because it was supposed to be an investment, supposed to appreciate (even modest appreciation was fine with me) and it was a foreclosure so I got it under market value. But of course, the day I bought it was the beginning of the downward trend. And the price continues to plumet daily. About 6 months after we bought the house, we were both laid off from our jobs (the same day as we worked for the same company). We held onto the side business, but because of the economy and no one buying, we also lost that too.
We got new jobs paying MUCH less and eventually were laid off from those too. Now both of us have been unemployed for about 3 months and have stopped paying the mortgage. There are NO jobs out there. So we will just stick it out until they force us out and then use whatever cash we have left to get a rental. Plenty of rentals are saying bad credit is ok because lots of people have bad credit now.
I would not sink every last dollar into that house unless you like not being able to put food on the table. Your best bet is bankruptcy. If they jsut foreclose, they will come after you for the difference. A bankruptcy would wipe it out. They WILL garnish your wages if they are short 100,000 on the sale of the house. It’s a lot of money.
It will take about 6 months to go to Sheriff’s sale. There will be a ton of notices, and they will start coming soon.
You should never "be OK" with trashing your credit. You will pay more for everything based on credit score, such as insurance. This may effect your ability to get a job or an apartment.
You seem to want to blame others for this, and are not overly concerned with the consequences, these are decisions you made. Taking an 80/20 loan was a terrible decision, but you are not the only one who got sucked into that scam. You also left a financially secure situation, which I understand, but again, a decision you made.
You would do well to talk to your lender to see if there are options available to you, and then an attorney about what is about to occur.