This would show on your credit bureau as a non R1 or non I1. It depends on how it is presented to a lender. Lender looks at overall strength of the application and not on one incidence.

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Divorce (or at least a legal separation ... the relationship will never recover) is imminent ... we have struggled with our arm loan since day one, and they modified it this last spring, but the payment is still way too high. neither of us can afford this house on our own ... hell, we can't afford it together! we've decided that we just need to "let it go" ...our credit will suffer 200-300 points (which sucks, because we're hovering around 700 now) ... now, the payment that was due on august 1st is the first one that we will be missing ... we are going to keep current on all other bills (credit cards, etc), if we are able. we plan on staying here "rent-free" for at least 3 months to build up a bit of a "nest egg" for rent and deposits elsewhere ... question one: the lender is starting to call me every day ... do i still let them think i am going to "catch up" before the end of the month, or just tell them "straight up" that we will not be making any more payments? i don't want the foreclosure process to be accelerated to happen sooner than 90 days late ... question two: i know a "short sale" is better for your credit than a foreclosure ... can i wait 2 months or so before i ask the lender for a short sale, to help "prolong" the process? the longer we can stay here (about 5 months ... thru the end of the year ... would be great) the better off we will be (money-wise) in the long run. question three: i'm sure an "eviction" does a number on your credit, all by itself ... does the foreclosure process always end with eviction, or can you jump ship before that? i'm pretty sure that in oregon, you can simply "walk away" with no recourse if you only have one mortgage ... so that's the plan. ahmsi can suck it.

Boy, that JTT guy is clueless ... ... I say, GET YOURS, SON! String 'em along for about a month, just tell 'em you're not getting as many hours at work and can't put food on the table AND pay the mortgage ... then start a short sale with an experienced real estate guy, and then hide the cash in your mattress for, like, 8 months or however long it takes to be over (so you can move out with fat stacks, holmes).

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I have filed chapter 7 bankruptcy and appeared for bankruptcy hearing/meeting. judge asked few question and told me i'm free to go no more hearing. after a week i received letter from my mortgage co, it says "notice hereby given that motion of relief from automatic stay has been filed in the above styled case. if hearing on the motion for relief from the automatic stay can not be held within thirty days, movant waives the requirement for holding a preliminary hearing within thirty days of filling the motion and agrees to a hearing on the earliest possible date. if a final decision is not rendered by the court within (60) days of the date of the request, movant waives the requirement that a final decision be issued within that period. movant consents to the automatic stay remaining in effect until the court orders otherwise. a hearing will be held january..............etc etc. i don't understand what does it mean, i thought lender just gonna send me eviction notice, coz i am willing to surrender my house. but i have few question 1. if i don't show up for hearing then what's gonna happen to house? 2. or if if show up, can i request to judge to give some time for eviction? 3. i don't live in my house and singed a lease b4 filling bankruptcy. can my tenants stay in my house if they pay rent to court/lender?

You did talk to a lawyer before filing for Chapter 7, right? This chapter 7 (and the house) has huge repercussions for you --- you should talk to a lawyer as opposed to depending on comments from (unknown) people via Internet and Yahoo-answers. And are you saying that you are not even living in the house that the Mortgage Company wants to evict you from?

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I've been reading about the wall street bailout for days. i've been trying to understand what caused it. now i read an article in the daily news and in crain's new york that city renters could be next victims of mortgage mess. the articles goes on to say that "an increasing number of apartment complexes face possible foreclosures and thousands of city renters could be the next victims of the mortgage crisis housing advocates warn. at least 580 buildings containing 40,000 units have one or more factors that could lead to mortgage default, crain's new york business reported yesterday on its website. private equity firms bought at least 90,000 affordable housing units in the past four years, many at inflated prices in badly leveraged deals, according to the partnership to preserve affordable housing. the riverton apartments in harlem and stuyvesant town on the east side are both at risk, according to the crain's website. riverton's owners indicated last month that they were on the verge of defaulting. and savory park, a seven building complex in harlem has been placed on a watch list. appollo real estate advisors and its partners bought the complex in 2006 for 175 million. appollo refinanced a year later, increasing the debt to 367.5 million, the credit rating agency realpoint reported. the agency called the risk of default on the load "moderate to high." housing advocates told crain's that buyers had unrealistic goals about rent increases. the same lenders caught up in the mortgage free-for-all in single family homes lent them money any-way." if these companies default on the mortgages (loans), what happens to the renters? what can the renters do? can the renters do anything? i live in one of the housing developments purchased by appollo real estate. what can the tenants do?

I own much much much smaller apartments in Washington State. I bought a small complex which had been foreclosed. All of my loans have a provision which assigns the rents to the lender in case of foreclosure . If your building is foreclosed on, then whoever takes possession of it will want you to pay them rent. They will want all the tenants in place and paying rent - so don't worry too much. In all of the situations I have experience with, maintenance and other services suffered some, but then owners in financial distress don't do a great job at that stuff either - so you might not notice too much of a change. You could move, but I wouldn't. You can protect yourself by keeping good records: your lease agreement, receipt for deposits, receipts for rent - or canceled checks. I think your greatest problem is likely to be poor coordination between the different people likely to be managing your apartments. You can protect yourself from that by having your stuff together. Good luck

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Found a house i fell in love with early december after already securing financing... or so i thought. the loan officer approved me and gave me a commitment to lend letter from the bank. the only conditions on that commitment were that it pass the appraisal inspection (it's a va home loan) and that any conditions for repairs in my offer be met. we were supposed to close dec 30th, but didn't because the sellers repairs were not acceptable and he hadn't done the repairs the va appraiser wanted. he says he will fix them and does them repairs properly this time. house is inspected again, my private inspector and the va inspector are happy. the house even has $20,000 in positive equity on the appraisal. loan officer tells me the paperwork is essentially done, they just have to say the repairs were done and everything is good. we agree to close the 5th of january. monday the 4th, the loan officer calls me and says there is a problem with my residual income. i need to free up $120 more a month to qualify for the loan. the mortgage on my house will be $300 less per month than i pay in rent right now and i qualified for this apartment! i don't have any debts except a student loan and a car payment. the student loan is only $80 a month so the only way to free up enough income would be to pay my car off in full, which is impossible for me right now since i don't have 11,000 in cash. now he is telling me if i don't find someone to cosign and boost my income then he can't close the loan. i've already given notice on my apartment, paid a lot of money to break my lease, and bought and paid for appliances for this house. i think a complete disaster may be averted since my mother offered on her own accord to cosign on the loan with me yesterday, but he still has me in a really bad situation. shouldn't my income qualification issues have come up a long time ago? why was i given a commitment letter from the bank? had i known it wasn't a sure thing, i would have never put in notice on my apartment and i would never have bought appliances. now i am stuck paying $500 for a va appraisal fee if i back out, i forfeit $2000 in earnest money, and i'll be homeless and forced to pull a couple more grand out of thin air to find another place to live since there are no open apartments and mine is already going to someone on the waiting list. is what the loan officer did legal? even if this loan closes, i still want to know what recourse i have or if there is any way to report him. i don't ever want this to happen to someone else. i wasn't asking if i had a "case," just if they could actually do that. a commitment letter from a bank would mean that not only had i been approved for the loan (they ran my credit, had my w-2's, paystubs, verified income and my employment, everything) but also through underwriting. there is a huge difference between a pre-approval and a commitment to lend.

I've been told that right around the end of 2009, Fannie Mae and Freddie Mac (the quasi-government companies that basically underwrite the mortgage industry at this time) completely overhauled their guidelines and rules for counting income. The mortgage companies and bank mortgage departments are just puppets on a string that have to live with a continually-changing set of mortgage rules. So yes, it is legal, and yes it certainly does stink! I am in a similar position. I was buying a house late 2009 with an approved mortgage and it did not appraise to the sale price. As we were renegotiating and re-doing the paperwork, the rules changed and now the mortgage banker will only count 70% of my income because I have had my job for less than 2 years. So now my income/loan ratio doesn't meet requirements. I have an 805 credit score btw. The whole thing is ridiculous - how does the government expect to get out of this economic mess and revive the housing market when they make it virtually impossible for a large percentage of people to get a mortgage? All because of the crooks and shysters who caused this problem but came out making millions with government bailouts, honest people with the ability to pay their mortgage and being shut out of the housing market.

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Febuary 1st of this year we moved into a rental home owned by a life-long family friend. our rent is fairly inexpensive for a 3 bedroom 2 bath ($850) in redding california. we paid a security deposit of $500 (also inexpensive) before we moved in. we have been paying rent on time every month. at the beginning of this month our landlord asked us for a copy of the lease (6 month lease), saying she can't find hers. she also asked us if we were interested in signing a longer lease for a year after this one is up. we told her we would love to. we didn't think anything was going on until we found a "notice of trustee's sale" on the front door a few weeks ago. in the notice it says "on june 29, 2010 ............. will sell at public auction to highest bidder........." it says the notice of sale is $134,743.51, which i am surprised... i remember when she bought this house 20 something years ago. i figured it was paid off. i sent the landlord a text telling her about the notice, she text back saying "i am pretty sure i know what is up. i will get back to you" she never did. two weeks ago my husband and i got a certified letter saying the exact same stuff as the "notice of trustee's sale". i sent the landlord an email telling her. she wrote back "i'm so sorry! i have taken care of that but it looks like the release has not been received by the selling agent. i will make a call and if there is a problem i will let you know...once again i'm very sorry!" i didn't hear anything back, so last week i sent her an email saying "have you heard anything"... to which she never responded. i know she has been online too because she has commented on several of my facebook photos and status updates... lol i have looked at several of those 'foreclosure' websites, and our rental home is on every one of them. i asked a friend of mine that is a mortgage lender and he told me to just wait it out and see what happens. my sister in law is a realtor and she told us to stop paying rent and just wait it out. tuesday is the day that it is suppose to be auctioned. i am worried that we will have 3 days to pack and leave... kinda hard to do when both my husband and i work full time, my husband is a full time student and we have children ya know... i guess my question is... what is going to happen on tuesday? do you think maybe she worked it out with her bank but just forgot to let us know? dang... expert realtor... harsh! i will pray that more friends come into your life so that you aren't such a meaner... i did call the number on the notice, it was just pre programed information on when the auction was, and at the end of the "pre programed information" it said that basically said that the information was not certain. i also am curious as to why, if we were paying her, why the mortgage is behind so much. if a bank, or private party purchases the house, could they increase the rent amount on the lease? or ask for more of a deposit? i too am worried if we get a 90 eviction notice, what we will do. if we have to pay rent every month how then could we afford to move? to put a security deposits and first months rent on another rental? lol! this question has turned into a novel!

The first two answers are completely wrong! Any real estate attorney that knows real estate should be able to tell you that you have rights as a tenant. You don't have to move out by Tuesday...no matter what anyone tells you. You are protected under the Protecting Tenants at Foreclosure Act of 2009. If the property goes through foreclosure on Tuesday, it just means that you will have a new owner. It will either be the bank or someone who purchases it then. From that point forward, you owe them rent just like you pay the current owner. You can't be evicted just because the property is in foreclosure. If you have a lease, you have the right to stay until the lease expires. If the property is bought by a new buyer, they can give you a 90-day notice to leave if he or she will occupy the home. If you are on a month-to-month agreement, you are entitled to a 90-day notice to move out before an eviction action can be brought against you. The worst thing you can do is stop paying rent. If it does foreclose, you will be responsible for paying them rent. If you stop paying rent, you will be evicted much quicker. If the current owner succeeds in postponing the foreclosure sale while it is resolved, you still have to pay him rent. Just because a homeowner is not paying his or her mortgage doesn't mean a tenant can stop paying rent. One has nothing to do with the other. Good Luck! Real Estate Investor EDIT: As for why he is behind...it can be for many reasons. He might be going going through financial diffculties instead of just walking away as many homeowners are doing. His rental income might not be enough to cover his mortgage or maybe his mortgage payments increased. There are many different possibilities. Keep in mind that most homeowners keep this personal so it's best not to ask as to why. Your current lease has to be honored by the new owner. When the lease expires and if there is a new owner, they can request a higher rent payment as long as it conforms with your states landlord-tenant laws. When you have been given your 90-day notice, you do have to leave by that date. If not, the owner can start the eviction process and have the court order you to move out. You can always talk to the new owner about your payments and maybe work something out. It's probably unlikely, but it's worth giving it a shot. Also, if you do work something out, make sure it is in writing. This helps protect you.

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There was an advertisement mailed to the home i'm currently renting addressed to "current resident" and outlined that the home is scheduled for trustee sale on nov. 3rd by a law firm on behalf of the lender. i did some digging online and called the law firm to confirm and it's true. we just moved in on july 17th - 3 months ago and signed a 2 year rental agreement with a realty company that's acting as a third party handling the renting process between us and the owner. the property manager nor i had any idea that the home was in the foreclosure process and that there is an auction scheduled at the local county court for november. he contacted the owner and the owner stated that they're going through a 'loan modification' and are 'confident it won't be foreclosed on'. should i believe this without any doubt and carry on with life as though this never happened? should i be concerned that the bank may in fact choose to sell the property anyways? my mother told me to hold onto the rent that's due nov. 1st until nov. 4th in case the home is sold because the rent we pay for the month of november may not be due to the homeowner [as he may no longer own the home]. i know you're obligated to pay rent to the landlord so long as you're living there but i'm also aware that the agreement between myself and the landlord is broken once the sale goes through. is this sound advice? also, do you think we should just break our lease after this stress and find another place to live? i'm guessing this loan modification/foreclosure threats/auction sale business implies that the homeowner is having trouble paying their mortgage on the house... not sure if we wish to be renting from someone under financial duress. hubby deploys in january and i'd hate to end up having to move/argue with the bank next year if this happens again and the bank forecloses on the home. this is in cumming, ga. my hubby spoke with someone in the jag dept and they said there's nothing they can do for us other than suggest an atlanta attorney; i was a little shocked. asked this question the other day [first question on yahoo answers] and set it up for voting on the answers 4-5 hours after - without realizing that no one else can answer after that. hah apologize for the duplicate, i'm still searching for some good advice.

This is cause for concern as the new owner can and usually does change the terms of the contract that you signed. However, they must give a certain amount of time to allow you to find another residence or agree to the new terms. Laws vacillate from state to state. Good luck

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I just recently found out that the duplex that i live in is in pre-foreclosure and is set for "quick sale". the owner of the property has sent a letter to inform me that the property will be in foreclosure by the end of the year. as you may have already guessed the owner of the property still wants me to pay him his rent but he's not going to use my rent money to try and save his property. i've been given conflicting advice....some people say since he's admitted that he has not intention on paying his mortgage i have no responsibility to him. i've also been told that i should just pay my rent to the owner and wait until i'm forced to move by the sheriff's office. since it is a duplex it's likely that there is a "rider" clause in his mortgage. if that's the case then i can pay the lender directly. i really have a problem with paying the owner rent money when i know that he is in default of his mortgage and hasn't paid it since july "08" (which just so happens to be the month i moved in). please advise me how to proceed in this situation. you should also know that i've qualified with a mortgage company to purchase the house. so every penny i get needs to go towards my earnest money as well as my closing cost. i find it quite interesting that everyone who has responded to my question has been very disconcerned with the fact that the tenant (myself and my neighbor) are being taken advantage of . it seems to me that there are no laws in place to protect tenants in this situation. and as for those people who seem to think that is none of my business whether or not the owner of my property pays his mortgage or not i say these few things to: 1. he made it my business when he decide to rent to me knowing that he wasn't going to pay his mortgage. (by the way he sent me a letter notifing me that he had no interest in saving the property from foreclosure.) 2. there is a such clause as 1-4 family rider clause...look it up if you don't believe me. 3. if you can't afford to have a rental property....then buy some other sort of investment....preferably one that doesn't affect someone else's livelyhood!

Unless your lease states he must be paying his mortgage it is none of your business what he does with his money. Your contract is for rent, you live there, you pay rent. While you need to pay your rent, I would advise you not to wait for the sheriff to move out, the eviction will be on your credit report and will effect your ability to rent, and sometimes to get work. If the landlord sells to another investor (most likely) then your lease stays in effect until it expires and you pay the new landlord. If the bank takes it they will inform you of that and give you 30 days to move out. They are likely to pay you to leave the place in good order.

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Okay, so i have lived in my home here in arizona for almost a year now. fortunately, i will be moving back home to texas at the end of this month. this weekend, a note was put on my front door. the note is intended for the owner of my home. it was notifying him that his home would be going up for auction as of november 09, 2009 at 12:00 p.m. in early july, the leasing office i go through told me that the home would be going up for loan re-modification. this morning, she told me that the loan must first go into default before this could be considered by the lender. the lender came and took pictures in july. it's now october and the home is going up for auction. i'd assume perhaps the modificaiton didn't go thorugh and the home is going through full fledge forclosure. my question is, if i've been paying rent and he has not paid the mortgage, what are they doing with my rent money? why am i continuing to be made to pay rent in a home that is going up for auction? if i were not going back to texas at the end of this month and intended to renew the lease, i am supposing that i would've been forced to move out due to forclosure. no one advised me of any of this. what should i do? am i out of my element here? am i looking at this wrong? i'm no expert here. but this happened to my mom and her husband and the constables put them out within 30 days. they had to stay in a hotel and put their stuff in storage until they got a new home. the house went up for auction and was forclosed. thoughts?

You should begin looking for alternate housing now and see if you can find an attorney who specializes in real estate and/or landlord/tenant law to talk to for free (it should be less than a 30 minute consultation). Many community groups, civic associations, & support groups know how to get good, free legal advice by using lawyers who volunteer for charity. I am not familiar with AZ tenant law, but it is a fair assumption that you are guaranteed nothing but timely notice (which you now have) and the option to terminate your lease without penalty or fee as a result of your landlords default. Your rent is in no way (legal) way connected to the mortgage payment for the property you are renting unless your rental contract actually says so (that would be rare). In many cases these days, desperate property owners are renting for significantly less than their mortgage payment in the hope that the market will turn around sooner rather than later. In general, if a property goes to auction with a rental agreement in force the new property owner is required to honor that agreement until it expires. Automatic renewals should never be assumed. You will want to be sure you speak to the new owners directly about renewing; most consider rented and long term tenants a good thing...but a few may have other plans for the property.

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We have a rental that will be empty at the end of feb,our tenant cannot afford the pmt any longer.we aren't making any money off him,just paying the mortgage on it,and although he has been a good tenant,he almost moved out back in sept/oct due to money problems.we can't do anything for him as far as lowering the pmt,since as i said,we aren't making a profit and i don't see the mortgage co. doing a refi on a rental to save about $40,which won't help him at all.we can't even afford to cut $100 or so off the rent and carry him for it,we couldn't pay our own house pmt if we did! it's very nice inside,due to all the remodeling,but would still be a short-sale,though,due to the market and the fact of it being an older,albeit nice,mobile home.we outgrew it and couldn't afford it,so had to live with family while we saved money to put towards a new place.the thought of renting it out again after he leaves is scary.we didn't want to do it the first time,but felt like we had no choice,the market being the way it was,etc. he just happened to be in the right place at the right time,with enough $$$ to cover rent and the pmts that we were behind,with the understanding that it was not a deposit and he would not be getting any of it back if he broke the lease.we have offered him 45 days to leave,rather than the standard 30,since that will make up for the money he put down towards it,thinking to eventually qualify to buy it through assumption (it's fha) of our loan or get his own loan.i don't know whether it's better to try and get a short sale approved (upside down 20-30k,is my best guesstimate),let it go into foreclosure (credit is shot anyways)or do a deed-in-lieu,if we can.we have been advised by a realtor friend not to try for a short-sale because of the market here,plus he says the lender will sue us/obtain a deficiency judgement (our state does permit them)but, we do have pmi because of it being a hud/fha loan.we know we aren't going to make any money off the sale,and we don't care. our main concern is-#1 ,taking care of this in a way that will satisfy the lender so that they won't sue us fit to break us/cause us to lose our current home,which we are buying through owner financing and worked very hard on just to make it livable.we can just make the pmt here now,with our income and only b/c our landlord/seller is very good about letting us split the pmt,whether it's 50/50 or 60/40 from month to month.he can do that,b/c it's his,free and clear.if we had an extra $100 to comfortably spare we would cut rent for our tenant and spot him that $100,at least for a little while.(i don't think they can't take our new house from us/put a lien against it,b/c it's not in our name yet) #2,letting the house sit vacant while it's up for short-sale/foreclosure,since it's not in the best neighborhood. we don't want to be responsible for damages/vandalism,but we are not going to let our tenant have a free ride.we already told him that if he is indeed moving,use the next 45 days to save up all his money towards his new place.we told him we do not expect rent during this time( if he can't pay the jan rent,why would he pay feb and still have money towards a new place,right?),nor will we come after him for money when he leaves after the 45 days,so long as he doesn't damage/trash the place.is that fair?we think so.we don't want the stress of renting to someone else after he leaves,being a month or two behind b/c of our current tenant not staying current,with the mortgage co. breathing down our necks,or sticking it to any new tenant,which i feel is just not right.we realize we've made some mistakes,but this was our first (and hopefully last!) experience as landlords.we made sure we weren't committing 'buy-n-bail' before we ever signed the papers for his rental/lease agreement,or the papers on our new house,we made sure we had him signed as a tenant,moving his things in,before we moved all our things out,so they couldn't claim we were abandoning the property. should we let him stay there.and just be one month behind,gradually trying to catch up,hoping he can keep up?this is,after all,the second time in 6 mos.,and while we've been in his shoes,it's too nerve-wracking to keep doing. should we keep him there,for the sake of having the property occupied and hopefully deterring damage/vandalism? we don't want to let him squat in it,just saving money towards a new place,nor do we feel comfortable collecting partial payment for a place that will be lost or sold eventually anyways.we know we can't be the only people in this sticky situation,but it feels hopeless and stressful,like we are doomed no matter which way we turn.it was a win-win situation in the beginning-we got to move in with family and save up for a place we could afford,he got to rent a place that was $50 cheaper a month,with a 2-car garage and

Foreclosure does not have any tax liabilities. Short Sales have tax liability. In 2010 the IRS Tax Courts ruled the Foreclosure Laws can not be used by Short Sales. The laws specifically say Foreclosure and do not mention Short Sales or any other form of loan adjustment . You must file the difference between the mortgage amount and the short sale as Income since it is borrowed money you spent and didn't pay back. Talk with a good Real Estate Attorney, Tax Attorney to see see what would be best for your situation, all us Yahoos out here don't have the necessary technical information on your finances to decide what is best for you.