Does this sound right?

Question

I've got a motivated seller saying that she is 12K behind in payments but she says that her monthly mortgage payments are only $630.  That means that she is 18 months behind.  How is that possible?  Wouldn't the bank have already foreclosed and kicked her out?

Account Closed · Answer

The bank coud have tacked on late fees, legal fees, filing fees and other fees to that figure. Also in some states the foreclosure is a judicial process requiring the banks to go through the court. In states with judicial foreclosures and all the backlog from the credit crisis, the courts are overwhelmed with cases that  it can take a couple of years to foreclose.

Also if your seller has filed for bankruptcy it may halt the foreclosure until the bankruptcy is resolved. You need to get thee whole story from the seller.

Steve Babiak · Answer

And the original judgment on that case I just mentioned in 2003 was for around $151K; the bank was seeking $312K at sheriff sale.  So you can see how that number can double.

Steve Babiak · Answer

950 days is nothing :D

Most recent sheriff sale in my area had a foreclosure case that started on May 2, 2003 (and finally did go back to the bank in July 2012), and you know that they were missing payments for a few months before the bank started the foreclosure.  That's a full 9 years for that lawsuit, and probably close to 10 years of delinquent payments!

Ben L. · Answer

Anything is possible. I know of a house that has been sitting in foreclosure for 950+ days...You heard me right!

Jimmy C. · Answer

Banks are taking their sweet times on some homes.  2-3 years of not paying is pretty average in this area...

Heck sometimes they just give the house to the borrower!  Ive seen short sales where the seller walks with cash and the lender got nothing.

Its a strange market, but their are still winners and loses like always!