A standard transaction in every real estate deal is the money from the buyer goes to a lawyer. The lawyer pays the real estate broker all the commissions, pays for a mortgage balance, outstanding mortgage payments if any, property taxes up to date, utility bills up to date, pays for all of the secured loans which were taken against the equity of the house if any and of course the legal fees. Is anything is left the seller gets a certified cheque from the lawyer with the balance.

Lawyer gives you gross 90K minus applicable fees and other penalties. You can then deposit it to the bank. Its clean money.

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A friend of mine that bought a house was one of those that where told by a realtor to pad his fiance reports and how to hide his debt. this is what cause foreclosures and the down fall of the economy. now the same realtor that made money selling him the house is making money selling it again as a foreclose home. is that fair? and how do we stop them?

No it's not fair. But what are you going to do? The State and feds won't step in, most of the realtors our old lady's with no math skills to speak of.

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I have notice that some celebrities do not pay off their mortgages when purchasing a house. is their a particular reason for that? the way i see it is if you have the money buy it and when you may need the money sell it instead of having to go bankrupt!

Bernie it is easy to say for us poor folk, but different for the rich. Buying a million dollar home is more than just a home it is more like a commodity. Most celebs will buy then eventually sell at a higher price if they upgraded or if the market is right. But being a bad real estate market, even the celebs cannot unload a 7 million dollar home on a would be buyer. That is just the beginning. Celebs like other rich people who have been around money for a while will get the sense of seeing it as a security. What I mean by that is they always have money on hand. With that thinking they live beyond their means and before you know it their a has been and hope their royalty money keeps coming in to pay off what they got that is still owed on. Of course you are not going to be seeing much of that aspect of their personal life all to often. The television Celeb reality shows for has been is like a celebrity welfare program. They cannot get any work so they go down to the has been employment office and get on the system. The sad thing though Bernie is that you do have some celebs who did their screen time, took their leave, and lived simple retired celeb lives. They paid their homes off or near paying their homes off, but the years economic turmoils that they have no way of controlling have put them in tight situations. Paying the property tax with a royalty check could easily leave them with nothing. Hence, the mortgage crisis they cannot sell their home but are still stuck the with tax or they get a foreclosure. Moral of the story. Do not buy into the celebrity glitz and glamor without considering the dark side of the industry. Hey I have an idea! Lets start boarding celebrity has beens.

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My father signed his house over to me 10yrs ago to fund the buying of a business -which i have since sold - now i am selling the house, as i can't afford the mortgage anymore. once the mortgage has been paid off, i will give the rest of the money to my father as it was his house (before he signed it over to me). i then need to declare myself bankrupt - as i have other unsecured debts, credit cards etc, which i cannot afford. i cannot afford to pay monthly payments for an iva, so bankruptcy is the only option. can i do this? or will the fact that i gave my father the money from the house have an affect and cause problems? would it look too suspicious?

You could sell the house and use the profit for your debts, or you could refinance at a lower interest rate, and still pay off all your credit cards and still keep the house.

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Wife and i took out a 50g equity loan over 4.5 yrs ago. at the time we both worked for a big company. we never thought we would both lose these jobs less than a year apart.( my wife stressed out of her 21yr old job and later developed fibromyalgia after nearly dying from bleeding ulcers.) .we had taken in 5 grandchildren almost 3 yrs earlier and of course things were difficult and her job was not supportive..anyway my point here is that over time the money was gone and neither of us found jobs anywhere near what we made before. we squeak by but whats killing us is that equity loan..we cant afford it, because we owe it still after 4 years the interest went sky high. we paid monthly but now after 4.5 years we actually owe more than what we borrowed ( 64g)! . we realize at our age, we will be dead before we can pay it, we still have 4 of the grand-kids to support, we can make our mortgage but the equity loan jumped up nearly the same as the mortgage. we feel our only way out is to bankrupt it. we are hearing terrible stories of people that got home loan modifications and were worse off! we feel so bad about the position are in. we don't even want to talk to the bank cause we don't trust them. i recently completed courses to update my abilities in autocad, solidworks and mastercam but still haven't found a job. since i lost the one really good job, i have worked in a few smaller, family oriented businesses that ended up closed. i went back to school on a scholarship. currently my income is edd,trust me, we pray daily for a decent job along with sending out resumes etc. it's not so easy when your considered older than most of the work force. my wife works for the school district part time when school is in session. we have no health insurance but with this money problem it's the least of our worries as this problem keeps us up at night. we can't sell our house, we would get nothing because with what we owe on it and the equity is about what the value of our small home has gone down to. also, a apartment or house would be more than our mortgage is and we will have these kids till they all turn 18. they are 10-17yrs old now) if your wondering, we do get state aide for the children approx 160.00 each. if not for that, we could not feed and care for them and they would all end up in foster homes...which is why we took them all in in the first place, to keep them together. this is basically all of it. any advice, any prayers appreciated. we haven't had tv for over 7 years, just dvd's. the oldest works part time & in school still. the house is 2 bedrooms so we can't go smaller.we all have given up luxuries my wife still has physcial/medical problems and can only work part time. she is spending the summer doing our yard sales. renting an apt would for sure be more than our mortgage.

I don't think you can default on your loan without losing your house. Talk to your bank before it's too late and see if you can work out a new restructuring plan. You may be surprised at how flexible they are. Banks don't want to repossess houses. They aren't in the real estate business and it's a lot of of trouble for them to deal with home sales. They'd rather work out a solution that benefits you and them. I don't know what you used your equity for, but for others that are reading this, DON'T use your home equity to pay off credit card debt! If you default on a credit card, you can ruin your credit, but you can't lose your home. If you default on an equity loan, you can ruin your credit and lose your home.

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I have an 80/20 loan on my house. i am 3 months behind on 1 and 2 on the other. i have tried to sell and i cant get what i need to pay off the house and i dont have any extra money to pay off the rest. i cant refin. tried 3 times. i just want out from under my house. i cant afford it anymore. i just wnat to move on, should i file bankrupt or just foreclose on the house, or do i have to file bankrupt to foreclose onthe house? what steps should i take now?

You need to start a dialogue with your lender. You either have to negotiate a lower payment or discuss a short sale. Find a Realtor that is familiar with the short sale process and put the house on the market. Your lenders will have to approve any offers you receive.

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Hello, everyone knows how bad the economy is. but anyway, my father moves my family around alot and my mother has always been a stay at home mom so he is the only form of income. he is really impulsive and has a really screwy way of doing things and seems not to care about the consequences. it has always driven my mother mad. now it is the worse. he took a $50,000 a year paycut because he got tired of working two jobs. now we are losing our house (which we could not afford the property tax on to begin with because we got screwed with a loan. there is no way to refinance that would even matter). my mom is going insane. we have 5 children. 3 are in college, myself included. all the money i make goes towards tuition. we need to come up with the money for first and last months rent on a place that is around $2,000 a month. we live in san diego and it is so expensive. my mom does not want to have to pull my other two siblings out of their schools in the middle of the year ( he did that to us older 3, 3 times ). she is sick of it. we were in this situation 4 years ago. we sold our house and had money then to get the money pit we are in now. but now the money is gone. our only option is to walk away from this house and go bankrupt. my mom is falling into an irrevocable depression. what can we do? we are thinking of stopping the house payment so that we can save up to move into a 3 bedroom apartment (with 7 people) but we will have to sell all of our stuff. my mom does not know how long that gives us until we are forced out! my mom is losing it. my dad is too prideful to talk to anybody. help!!! my mom has no college education because she devoted her life to us. she is trying to go to community college but may have to stop now. she knows she will get paid minimum wage at best and there are still young kids living at home who need her. wow, that really did not help to insult me at all. i go to ucsd. i can't even begin to afford that by myself! my father still has too big of an income for me to get any financial aid. the rest of us kids are in the same situation. i can't quit going to school. that will not help myself or my parents!!! a**hole!

Contact FAFSA and let them know whats happening. Tell them your parents are in financial problems and will be unable to contribute anything to your education. See if your financial aide can be recalculated. Siblings in college should do the same. Contact your financial aides office and let them know. See if there's a way to not count your dad's income. If worse comes to worse, you could work more and take fewer classes to help out until things get better. It does sound like your father makes enough money to support a family, but not enough to pay all these college bills.....it is just too much. Good luck!

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...my sister is declaring herslef bankrupt but after she marrys next yr she wants to move to usa with her 'then husband'..will it be ok for her to move cos she will be married by then..he will have sold his house and have quite abit of money in his account

It would be a problem if HE was bankrupt. Because he needs to show he can support her and that she won't be a public charge. But they don't look at her debts or credit history and say he has to make this much in order to bring her. He doesn't need to make more just because she is 'high maintenance', (at least for immigration maybe to actually marry her) it is based on an average.

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My ex partner has more money going out then coming in, i feel so sorry for him!! the house is up for sale but has had no interest in the house what so ever. he has loans and bils coming out of his ears, the only thing i can think of is to go bankrupt or selling the house to one of thoughs companys that buy your house fast, thats how bad its is. anyone have any good advice????

If you are in the UK, go to the CAB (Citizens Advice Bureau) - it's free and they may be able to help him reorganise his finances. To sell the house faster, drop the price a bit (look at how much others are going for in your area and start 10K below) - you'll still get more than with these shark companies! Prepare the house well too - make sure the garden if any is spotless and the front of the house looks welcoming, finish any DIY work started, paint over tired looking walls, get rid of all the clutter so it looks big, and if your furniture looks horrible, beg and borrow from family so you get a nice look - get your friends/family to come and look at it for you and point the bits they would not like as a potential buyer. It doesn't have to cost anything, apart from a huge amount of elbow grease, but it could help you with the sale. Good luck

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My parents are getting divorced soon and me and my mom are going to have to leave the house because my dad is going to try to throw us out of the house... so we were going to try looking for a house that was like the one we already had, except its cheaper and less crappy. today my friend and i were talking about the whole divorce thing, and she asked me when exactly was i moving, so i told her i didn't even know because we hadn't even found a house yet. well it turns out that she and her parents are trying to move too, becuase she's been living at her grandma's house and her family really wants to get out of there... then we were talking about how cool it could be if my mom and i lived with her and the rest of her family. that would be me and her, and her brother, so it would be 3 kids, plus her parents, and my mom. so that would be six people and eventually her half-brother might have to live with them because he's trying to find a job so he can go off to college... well the reason i think this would be a good idea is because when we sell the house, we're probably only getting half the money for it... which would only be around 100,000 and my mom doesn't even have a job, so that really isn't enough for a "good'' house. but if we lived together my mom and her parents could combine the money and get a bigger house for all of us. when we were talking about this we were just doing it for fun and talking about how cool it would be... just like any friends usually do... but then we realized that it really wasn't unlikely for us to be able to live together... and she said that her parents might be up for the idea too, but first she just has to tell them about all the crap that's going on and why were moving, because they don't know a thing, so if they find out that we might even go bankrupt and my dad will get all the money for the house and we have to live in the car, they might actually take all this seriously and we could all talk it out? and i think we'll probably all get along really well, her parents and i get along really well, and so does my mom, and me and my friend spend like all day together, and we hardly ever get bored of hanging out, but the only problem is that her younger brother gets on our nerves a lot... but my mom'll whip him into shape... xd so what do you think...? could we really make this work out...? and it's not like some silly dream that we would be sisters and stuff like that, lol... we were actually really seriuous about this...(:

The two families can certainly live together but it would be a terrible idea for your mom to put her money into a house with another family. She needs to keep her money separate. She can just pay them rent & utilities. Let me caution you that this arrangement almost never works out if the house has only one kitchen. It can work when a house has two levels and each one has living quarters and kitchen. It looks like you all would need at least four bedrooms and two baths, which is a fairly large home.