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C.Fortunato
C.Fortunato, Attorney
Category: Legal
Satisfied Customers: 8023
Experience:  Admitted NYS Bar, member ABA, NYSBA, NYCBA, QCBA, Licensed Real Estate Broker
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I am 6 months behind in house payments. Mort. of $333000 and

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I am 6 months behind in house payments. Mort. of $333000 and payments of $3200 a mo. The house is in Wi. It ihas a bad septic system that will need replacement in the years aheaD. iT PROBALLy would be saleable for $200000. I want to get out from under it. Am 72 yrs. old and have moved to Oregon to live with son. Will I have legal problems if it is fgoreclosed by HSBC bank.

C.Fortunato :

Hi - my name is XXXXX XXXXX I am a Real Estate and Consumer Protection attorney here to assist you.

C.Fortunato :

Although the mortgage company (HSBC) will be able to get a deficiency judgment for the balance owed for the mortgage after the house forecloses, there is probably little that HSBC can do with the judgment if you are no longer working, and if you do not own significant assets.

Customer:

We do not live in the house and are renting it for $1500 a month which is no where what we need to pay bills. Would a short sale or trying to give them back the house w/o foreclosure procedure be an option/ thanks

C.Fortunato :

Thank you for your response.

C.Fortunato :

A short sale or a deed-in-lieu of foreclosure would both be better than allowing the house to foreclose. This is because both wi

C.Fortunato :

can prevent a deficiency judgment.

C.Fortunato :

If you are behind in your mortgage payments, you can call the mortgage company and offer to sign the house over to them, so that they do not have to go through the time and expense of foreclosing.

C.Fortunato :

That is the easiest way to avoid foreclosure. However, the other option is a short sale - which involves getting the mortgage company to accept a sale of the house for less than the balance on the mortgage.

C.Fortunato :

In general, a mortgage company will prefer a short sale to a deed-in-lieu, and if this is the case with your mortgage company, you can contact a realtor who specializes in short sales. These realtors will deal directly with your bank.

Customer:

I will talk to the bank...they are really beligerent...but will try to see if they will pursue options. I do think that Wisconsin is one of the states that mort. co. can not do anything if we get foreclosed...about attatching assets etc. We do not have much except retirement plans and an IRA and we are full time oregon residents. Thanks. /will see what you say and will talk to bank and go from there.

C.Fortunato :

You're welcome!

C.Fortunato :

And yes, IRA's and similar retirement plans are exempt (protected) from collection efforts by creditors.

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