We own a house in Urbandale,IA. My husband and I lost our jobs and our house was foreclosed on. Due to lack of legal advice (we used vastly case over-loaded IA. Legal Aid and a state funded mediation service) and lack of foreclosure knowledge we moved out of the house after the foreclosure.
We continued attempted modification process but were finally advised we did not qualify. I continued to watch for the sheriff sale of the house but it continued to get canceled.
The house remained in our name and the city was getting after us to repair the wood siding etc so we were concerned about why the bank had not sold it. We just received a letter saying that back in May 2011 Bank of America rescinded the foreclosure.
Bank of America will not take a deed in lieu unless the house has been on the market for 6 months (they say Freddie Mac insists on that). We are not sure what the best thing for us to do is at this point.
We are paying $1040.00 a month for rent of an apartment and do not know if financially we are better to move back into the house and make the repairs or put it on the market and let it go as a short sell or deed in lieu. or finances are still limited – what is your advice?
Interesting situation indeed. It’s a less common but not unheard of situation. Banks sometimes don’t take the homes back so they don’t have to be on the hook for upkeep and taxes on the property.
So as it appears, you still own the house and it is still severely delinquent. I’m uncertain how moving back in and repairing it would prevent Bank of America from later snatching it back in a future foreclosure without reaching an agreement with Bank of America to address the underlying mortgage default.
It seems that moving back in would make immediate financial sense but what’s the plan if they change their mind? Are you willing to just wait for that event and in the meantime invest in the property?
Post your answers in the comments section below.