In laymen's terms, what does it mean when somebody forecloses on their house?
Foreclosure
- Thread starter D_Thoraxis_Biggulp
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Principessa
Expert Member
Foreclosure: When a homeowner defaults by failing to make payments on his or her mortgage, the bank or financial institution that holds the mortgage note may foreclose on the property. Foreclosure gives the legal ownership of a property to the bank to allow the bank to recoup its investment. Foreclosure proceedings vary by state but usually involve court appearances to ensure the foreclosure is warranted.
You just got a 2nd job, I hope foreclosure isn't imminent! :frown:
The laws do vary by state. In Georgia you can default and be foreclosed upon within 45 days. In other states you have from three to six months before the bank forecloses on your home.
You just got a 2nd job, I hope foreclosure isn't imminent! :frown:
The laws do vary by state. In Georgia you can default and be foreclosed upon within 45 days. In other states you have from three to six months before the bank forecloses on your home.
A new job, not a second job, actually.
So, little back story catch-up, moved down here to live with my fiancee's dad for about a year in order to cut down my bills and get some of my debts paid off. You know, trying to cut my monthly expenses before I get married. Well, I've come to find out that he's delinquent on his house payments and is close to being forced into foreclosure. That's the whole reason why he hasn't been taking my fiancee's calls to answer her questions about when and how he's going to get her down here. He wants me to get in a couple of paychecks first so he can be sure I can support both of us down here in the event that he does foreclose.
Stupid move on his part though. If I can't afford to support both of us (she and I, not he and I) it's not like supporting myself alone is going to be that much easier. And it's especially not like I'm going to stay down here. Knoxville, TN is pretty economically imbalanced, but Tampa, FL is even worse. Oh and the fact of, y'know engaged and living 600 miles apart is fucking stupid if neither of us is in the military.
What's funny is, he's talked about signing the house over to me and her "if we play our cards right." Turns out he's not doing us a favor, he's just passing his problem on to someone with less income and more necessary expenses. Oh and someone who actually pays taxes.
My first paycheck comes in two weeks, starting the new job this coming Monday. When I get it, I'm going to spend about $80 on groceries, whip up a bunch of cheap tasty food to stash in the fridge and encourage him not to eat out every meal like he does. And I mean every meal. When I got here, the fridge was full, but almost the entirety of it was collard greens for his lizard and Amber Bock.
So, little back story catch-up, moved down here to live with my fiancee's dad for about a year in order to cut down my bills and get some of my debts paid off. You know, trying to cut my monthly expenses before I get married. Well, I've come to find out that he's delinquent on his house payments and is close to being forced into foreclosure. That's the whole reason why he hasn't been taking my fiancee's calls to answer her questions about when and how he's going to get her down here. He wants me to get in a couple of paychecks first so he can be sure I can support both of us down here in the event that he does foreclose.
Stupid move on his part though. If I can't afford to support both of us (she and I, not he and I) it's not like supporting myself alone is going to be that much easier. And it's especially not like I'm going to stay down here. Knoxville, TN is pretty economically imbalanced, but Tampa, FL is even worse. Oh and the fact of, y'know engaged and living 600 miles apart is fucking stupid if neither of us is in the military.
What's funny is, he's talked about signing the house over to me and her "if we play our cards right." Turns out he's not doing us a favor, he's just passing his problem on to someone with less income and more necessary expenses. Oh and someone who actually pays taxes.
My first paycheck comes in two weeks, starting the new job this coming Monday. When I get it, I'm going to spend about $80 on groceries, whip up a bunch of cheap tasty food to stash in the fridge and encourage him not to eat out every meal like he does. And I mean every meal. When I got here, the fridge was full, but almost the entirety of it was collard greens for his lizard and Amber Bock.
foreclosure is a legal process which often occurs when people have their head up their asses when making the most important financial decision of their lives.
There are no free lunches or below market rate loans. yeah, I'm being sarcastic.
There are no free lunches or below market rate loans. yeah, I'm being sarcastic.
Yeh, this guy definitely has his head up his ass. I would say he has good intentions, but now I'm starting to wonder if the only reason he invited me down here was so he could charge me rent at a rate to be determined by my income in order to pull his ass out of the pit without having to change his to a frugal lifestyle.
transformer_99
Experimental Member
Yeah, consider it a repossession on a house, like it would be for a car when the buyer doesn't make their payments every month. Mortgages are the same as secured loans. It's basically backed, but not limited to the property itself. Mortgages require buyers to list other assets during the application process and if in the process of satisfying a foreclosure, the bank can take those assets too.
Interest is a big chunk of any mortgage payment early and through as much as 2/3 to 3/4 of the mortgage's term/life, so really all anyone has done is paid off 98 to 99 of an interest payment in the early stages (first year) of any mortgage. Very little goes towards paying the principal sales price of the home. If you have Microsoft Excel, you can get a spreadsheet template that computes interest and principal for a mortgage or even a car loan. Any loan is interest heavy/front loaded . And then there's the fact that a lot of those laons were simply "interest only" mortgages with balloon payments for paying off the principal at the end of the mortgage. These kind of loans work well and even encourage property flipping. The shell game is about hoping the property appreciates enough in a sale in the short term to create a significant enough profit. It's a shaky & risky financing arrangement that worked when the price of homes inflated as they did early in the real estate debacle this nation now faces.
Interest is a big chunk of any mortgage payment early and through as much as 2/3 to 3/4 of the mortgage's term/life, so really all anyone has done is paid off 98 to 99 of an interest payment in the early stages (first year) of any mortgage. Very little goes towards paying the principal sales price of the home. If you have Microsoft Excel, you can get a spreadsheet template that computes interest and principal for a mortgage or even a car loan. Any loan is interest heavy/front loaded . And then there's the fact that a lot of those laons were simply "interest only" mortgages with balloon payments for paying off the principal at the end of the mortgage. These kind of loans work well and even encourage property flipping. The shell game is about hoping the property appreciates enough in a sale in the short term to create a significant enough profit. It's a shaky & risky financing arrangement that worked when the price of homes inflated as they did early in the real estate debacle this nation now faces.
I think it's a distinct possibility that he has you there to supplement his income. Nothing wrong with that if he had been outfront. Otherwise, he sounds manipulative. Wonder if the whole family is that manipulative? Something to think about.
He said nothing about supplementing his income beforehand, and we even explained that it was so I could cut out things like rent and utilities for a while in order to pay down my debts and better enable myself to support his daughter. Fortunately, the whole family isn't like that. Her mom's side of the family is far more decent. We're looking for our next move to put us closer to them, in a year or two.
Principessa
Expert Member
My bad, I didn't go back to read that post.
Sounds like your future father-in-law does not have yours or his daughters best interest at heart. :frown1: I was forced into a somewhat similar situation a few years ago. It wasn't fun. I ate a lot of pasta, not always with my preferred red sauce, and rarely with meat. :redface:
I wish you well.
He is a shady character, but we were under the impression that he wasn't about to lose his house, what with his being a Gulf Coast contractor and having not spent the past 20-plus years supporting a family. My bad.
Yeh, I practically live off of pasta as it is. Fortunately, I was raised by a chef, so I know a lot of inexpensive variations. For example: I can make a gallon of chili using strictly fresh ingredients, nothing canned processed or precooked, for $13. Add in $2 for a pound of uncooked elbow noodles and tax. You got 18 - 20 plates of food for less than a dollar per plate. A gallon of my spaghetti sauce costs a bit less and generally covers more pasta. Fresh alfredo sauce is unfortunately pricey though.
Yeh, I practically live off of pasta as it is. Fortunately, I was raised by a chef, so I know a lot of inexpensive variations. For example: I can make a gallon of chili using strictly fresh ingredients, nothing canned processed or precooked, for $13. Add in $2 for a pound of uncooked elbow noodles and tax. You got 18 - 20 plates of food for less than a dollar per plate. A gallon of my spaghetti sauce costs a bit less and generally covers more pasta. Fresh alfredo sauce is unfortunately pricey though.
Do not accept that house whatever you do. "Sign it over to you," my ass. He can't sign over the house to you so long as it's mortgaged. What he may try to do is convince you to become a co-owner and join him on the title. He may say that the title will be in both your names but the mortgage only in his. If he does that, then you become liable for the mortgage just the same as he is. If he can't pay it then the bank comes after you.
Given his shady past.... do yourself a favor. Put a little note somewhere private to remind yourself that if he ever offers you the house to be sure to do a title search first. Go to a title company and pay them to research the hell out of that title to make absolutely certain there are no encumbrances you aren't aware of (like mortgages, back taxes, and liens).
Given his shady past.... do yourself a favor. Put a little note somewhere private to remind yourself that if he ever offers you the house to be sure to do a title search first. Go to a title company and pay them to research the hell out of that title to make absolutely certain there are no encumbrances you aren't aware of (like mortgages, back taxes, and liens).
Yeh, that's exactly what I'm thinking at this point. He had us under the impression that he was in control of his finances and thus would have the house paid off in the next year or two. Now it sounds more like he wants to sign his problems over to me. Not gonna happen.
geez what a creep, i hope this situation doesn't get the best of you. sux the way people LOVE screwing someone else over.
By him eating out every meal while "broke", and the food he keeps is basically food for his lizard.... I mean this guy sounds like he's very immature for his age. Grown up child this dad is.
Anyway, hope you and the fiancee can move far, far away from this guy when you get married. He could shape up as a recurring nightmare, if you know what I mean.
Good luck buddy, you sound like you got command of the situation.
Anyway, hope you and the fiancee can move far, far away from this guy when you get married. He could shape up as a recurring nightmare, if you know what I mean.
Good luck buddy, you sound like you got command of the situation.
Yeah it sounds like you're being the bigger person and being civil towards him but I'd keep a safe distance. Not to judge your future in-law buy my Gramma always said evil is a bottomless well. If someone will manipulate you like like, there's no telling what else he'd do to you.
Well, he had no hand in raising her, so his side of the family has no connection whatsoever to her mom's side of the family. So, when we have the means to move to Massachusetts, we'll be in the presence of far better company.
Meanwhile, I'm devising a plan to get him to bring his daughter down here on our terms instead of on his own, since his answers are about as straight as marley.
Meanwhile, I'm devising a plan to get him to bring his daughter down here on our terms instead of on his own, since his answers are about as straight as marley.
transformer_99
Experimental Member
Depends upon how you handle it or even your perspective of it. If you can swing the mortgage as a family unit, you might very well wind up with property without having to come up with a downpay or realtor costs ? You have to live somewhere and even if you are never on the deed, reduced rent isn't any worse than paying an apartment complex top dollar to live in an apartment ? And if it winds up being more, well living in a large enough house may be better than apartment dwelling in your own private unit. You can share utilities and food expenses even. Sometimes it's an upgrade in lifestyle with some downsides. Not being on the deed also gives you the flexibility to move later in the short term as you indicated.
People marry into families, you know, "for better or worse, til death do you part". Those words are uttered at every wedding. Besides, you come with your share of baggage too ? Your move to Tampa comes with a thought process of getting yourself out of a bind. So far you've landed a new job and in this economy that's a plus. Part of me is thinking your ulterior motives aren't any beter than your portrayal of his ? Going into any family with the thought process that they are all trying to screw you over is just as paranoid schizophrenic as thinking your neighbors are slashing your tires ? It's unhealthy for any realtionship. And I know I've had my issues just the same about others beating up a new car. But I do discern the difference from being too stupid to open a car door to apathy, while no longer tolerating/empowering it as an accident, with disregard for other's property from an intentional, malicious and calculated intent.
But anyway, your portrayal of your role to get out of debt and take care of a daughter is quite noble, even a "knight in shining armor" tale ? But that's not real world life, the reality of anything behind the glamour of the surface of it is hard work and if it needs doing, do you part, there's not going to be any standing ovation for doing it, we do what we have to do, no matter how demeaning it may make us feel ? Hopefully the prize at the end of all this is a better life with a wonderful woman, but there are no guarantees there either. My intent here isn't to pick you apart, but rather to ground you in the reality for the tasks at hand. Nobody said it was going to be easy.
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