Post Foreclosure Aftermath

This is an important article to share given the number of foreclosures that have happened in recent years.

http://www.reuters.com/article/2014/10/14/us-usa-housing-foreclosures-insight-idUSKCN0I30BU20141014feedType=RSS&feedName=businessNews

The gist of it – banks are looking to enforce delinquency judgements on people who have foreclosed in recent years, with Fannie Mae being the most aggressive.  People are being surprised by large judgements for foreclosures they thought were behind them.

Even if you have moved on from your foreclosure and rebuilt your life, they can still get a judgment against you. To what degree depends on the state of your foreclosure. Details here http://www.cga.ct.gov/2010/rpt/2010-R-0327.htm

For those of you in Massachusetts, they can get a judgement against you, but they must notify you 21 days before the foreclosure sale date of your home.

In CT, they can without giving notice.

The good news is that the larger banks – BoA, Citi, Wells Fargo and JP Morgan don’t typically go for delinquency judgements. Frankly, the banks should not be doing this given they got billions in the bailout. AND that they caused the problem in the first place by giving out untenable loans.

My advice – if you do get a notice, read up on the code for your state, then contact an attorney. I know you won’t want to spend the money, but better a few hundred or thousand dollars to get representation than to get a judgement against your for tens of thousands. if the bank is successful in getting a judgement against you, they can levy your bank accounts and garnish your wages, crippling you financially and dragging down your credit score yet again.

If you find yourself in foreclosure now, there is no shame in it.  The economy is still tough and will be for a while longer.  The best thing you can do is to talk to an attorney now to see what the ramifications will be if it goes that far.  Also, to speak to a Realtor to see if you can salvage some equity out of your house by selling before it is too late.

Want to talk about selling your home? Feel free to contact me.

Michelle J. Lane

Michelle J. Lane
Century 21 Commonwealth
CELL: 617 584-3904