Comments on: All About Washington State Foreclosures

By: Toby Barnett

Toby Barnett — Wed, 14 Dec 2011 22:36:31 +0000

The Power of Sale clause should be in the loan contract so I would start by reviewing the terms in which the loan was agreed too. The loan docs will have all the items concerning payment, foreclosure process, penalties, pre-payment and so forth.

By: Danny

Danny — Wed, 14 Dec 2011 22:06:05 +0000

How do I verify my loan has a Power of Sale Clause??

Thanks-

By: Toby Barnett

Toby Barnett — Thu, 28 Jul 2011 15:54:17 +0000

Hi Liz, sorry to hear about your grandma’s situation. Purchasing a home with a friend, boyfriend and/or girlfriend can always be tricky if any sort of “falling out” happens. Your grandma has 3 options:

1. Refinance the home and get the property in solely in her name.
2. Default on the payments and have the property go back to the lienholder.

3. Do a short sale and get released from any obligation from the home (a CMA will determine if the property will sell for less than is owed against it).

You can email me at toby@barnettassociates.net or call 425.210.0709 and we can discuss the options in a more private setting. Thanks and wish you the best!

By: Liz

Liz — Thu, 28 Jul 2011 06:27:04 +0000

Hi there,
My Grandma bought her house with her best friend almost 10 years ago, and both of their names are on the deed. My Grandmas roommate decided to move out, after a sort of “falling out” and she threatened to stop paying her half of everything, and “let the house go to default”. My Grandma cannot afford to pay the mortgage alone and doesnt know what to do. The roommate is now saying she will get an attorney to obtain half of the value of the home, but my grandma says the house has no equity on it, and doesnt see how the roommate can sue since she decided to leave, and left her hanging to take over all payments. I dont see how what she did can be legal. What are her options? Thank you so much!

By: Terry

Terry — Thu, 07 Jul 2011 01:29:32 +0000

Like a few people above, I am underwater by about $75K. My Loan is non-judicial. I keep hearing the housing market isn’t going to recover for 7 or more years. With that said, it doesn’t make any sense to stay in the house as I’m not planning on retiring here. I just need to walk away now. However, I’ve read so much on the internet, I’m afraid the bank will “get me”. I sure could use a recommendation as to a good, experienced lawyer that can help me navigate walking away without getting hurt. I live in Vancouver, WA. Can you recommend someone?

By: Toby Barnett

Toby Barnett — Wed, 08 Jun 2011 20:16:44 +0000

Hi Scuba, it is difficult to determine what a lienholder would do if you simply gave back the keys but one thing to check is: was there a personal guarantee on the loan package. If there was a personal guarantee then the lienholder to go after personal assets to make up a difference from what is owed on the property and what the property is sold for.

To avoid additional ramifications it would be wise to try and sell the property by doing a short sale. A short sale gives the lienholder the opportunity to accept less than what is owed against the property. Typically, homeowners who do sell their home short are free and clear of the property but sometimes see a 1099 from the government for the debt forgiveness – the government thinks since the debt is forgiven then it should be counted as income and pay taxes on that money.

By: SCUBA Diver

SCUBA Diver — Tue, 07 Jun 2011 23:22:11 +0000

I am nearly 62. Like many, a few months before the real estate bubble burst, when housing prices were at their higest, I took advantage of an interest only 100% loan thinking that by the time I would retire, the property would be worth at least enough to break even. That, of course has not happened and considering that I’m $70,000 +/- under water and would like to retire in 18 or so months, I’m not sure what my options are.
I have a retirement home in another state and will have Social Security, some moderate investments and a pension when I retire. I cannot afford to make these $2300/month mortgage payments in my retirement.
I am considering sinding GMAC a “jingle letter” with my house keys and simply walk away. What are the ramifications if I do this aside from slamming my credit rating?

By: Toby Barnett

Toby Barnett — Thu, 19 May 2011 21:32:23 +0000

Hi Jenny, I am not an attorney and you may want to consult one regarding your specific situation. With that said, it is my understanding is if you signed a ‘personal guarantee’ in the financing terms then Wells Fargo could potentially seek other assets to make up for their losses.

By: Jenny

Jenny — Thu, 19 May 2011 21:19:37 +0000

Hi my name is Jenny. I bought a condo in 2003 and 2007 I’m upgrade to a single family home. when I move i put my condo for sale but all offer to low so I take off the market and rent it out. Now my job become unstable and can’t afford the single family home. I try to put up for short sale but no offer. I plan to move in June back to the condo and let the single house goes forclosure if short sale do not work. I have only one loan in the single house that I want to leave. Its with well fargos, do you think they will lean the condo of the whole amount of the single house value.

By: Toby Barnett

Toby Barnett — Thu, 27 Jan 2011 19:52:06 +0000

Hi Andrew, thanks for the compliment and yes I can email the attorney information. I have switched attorney due to my colleague in Bellevue primarily focuses on commercial real estate and insurance claims. Have you thought about trying to do a short sale to get out from underneath the property and avoid the legalities of walking away?