Personal Finance

Help.. Possible Foreclosure. Need Advice

  • Last Updated:
  • Nov 25th, 2013 9:50 am
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Deal Addict
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Jun 26, 2012
1370 posts
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U
I don't know how everything is "fraud" and you always end up going to jail for it.

Here's a scenario for you to consider.
So.. Buddy sells his house.
Takes the money and gives it to a family member who is dying of cancer.
Unable to pay off any debt he files bankruptcy.
He now goes to jail?

This is why I never get credit for anything. The banks have more rights than you do.
Member
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Apr 1, 2009
406 posts
12 upvotes
jeremyhalifax88 wrote:
Nov 24th, 2013 9:07 am
I don't know how everything is "fraud" and you always end up going to jail for it.

Here's a scenario for you to consider.
So.. Buddy sells his house.
Takes the money and gives it to a family member who is dying of cancer.
Unable to pay off any debt he files bankruptcy.
He now goes to jail?

This is why I never get credit for anything. The banks have more rights than you do.
If there is a house sale, all debts against the home must be paid in full before OP gets any money. This means that all collections with writs on the house will need to be paid. Considering that the house hasn't been paid in years, and a second mortgage is not getting approved, then best case scenario is that everything is paid with the sale.

Home ownership definitely isn't for everyone.
Deal Addict
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Jun 26, 2012
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tophomeloans wrote:
Nov 24th, 2013 10:01 am
If there is a house sale, all debts against the home must be paid in full before OP gets any money. This means that all collections with writs on the house will need to be paid. Considering that the house hasn't been paid in years, and a second mortgage is not getting approved, then best case scenario is that everything is paid with the sale.

Home ownership definitely isn't for everyone.
I definitely didn't know that. Thank-you for clearing that up with me.
Deal Addict
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Jun 14, 2012
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It's clear OP will do everything possible to not sell the house. He posted here hoping you guys knew of some loop hole that allows him to keep the house. That's why he is blaming the bank, the mortgage broker, everyone but himself. So I think everyone's suggestion will fall on deaf ears and he will just dig himself even deeper into debt. Actually his situation is a lot more common than people think, that's why average house price in the GTA is so out of whack compare to median income, because everyone thinks he deserves to own a house.
Deal Addict
Feb 2, 2011
1605 posts
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Ottawa
All the good advice has already been covered by previous posts.

I do wonder though if this isn't a troll post from the OP. Username like "Credible1" and makes his first post something like this? You have to wonder.
Deal Expert
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Dec 11, 2005
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kingofwale wrote:
Nov 23rd, 2013 7:44 pm
sell the house. pay off the debts, and start over... Only thing you can do.
I would agree with this. Sell the house and pay off the debts, move into a decept apartment. You say you have lots of equity, so hopefully you will have some leftover money to start saving for the next house so it won't be too long.

You should not be emotionally attached to a house. All it is is wood and plaster. It is your family that matters. If you indeed have built up equity, consider yourself lucky that this happened during a booming market. GTFO before house prices drop and you get in REAL trouble. If you have equity, there is nothing wrong with selling the house, you can always buy another in short order.

As an aside... what you should have done, the INSTANT you found out your wife was ill and you might be in for some tough times, was to get as much credit as you could. It is always MUCH easier to borrow when you don't need the money than when you do. You should have re-financed THEN, and taken the extra money and put it aside, so that when the inevitable hardships came, you could use that money to make your payments.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Fanatic
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Sep 13, 2005
6816 posts
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Ottawa
Lots of great advices here! I also think you should sell the house and downgrade to a 1 bedroom apartment or 2 bedroom if you have kids. There is no shame in cutting costs and if your friends mock or give you trouble then they were never friends to begin with. Wait till your wife's health get better before you buy another house and I hope she is ok. This is why I've always been a firm believer that if you're a couple to buy with the budget that you can pay the mortgage with one salary so you're not stretched so thin. That way if crap hits the fan you aren't worried about losing your house so you can concentrate on getting better.
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Nov 21, 2007
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Scarborough
Xiaohaibao wrote:
Nov 24th, 2013 11:15 am
It's clear OP will do everything possible to not sell the house. He posted here hoping you guys knew of some loopholes that will allow him to keep the house. That's why he is blaming the bank, the mortgage broker, everyone but himself. So I think everyone's suggestion will fall on deaf ears and he will just dig himself even deeper into debt. Actually his situation is a lot more common than people think, that's why average house price in the GTA is so out of whack compare to median income, because everyone thinks he deserves to own a house.
+1


So pulease, no more advice on selling...he/she knows that.

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