How Long Before Its Gone?

Hello,
I know of someone who lives in Austin, Texas who is late on their mortgage by a month or two and the payment check bounced. He has been late before, but was able to pay late. but now he received a notice last week that the check bounced and now that they are in the process of taking the house.

How much time does he have to pay it before they take it away?

How long it takes depends on if the property is his homestead or just investment property. With investment property the trustee has to give 21 days notice of default and intent to foreclose prior to the sale which always takes place on the first Tuesday of each month. This is pretty fast and once the notice is received by the owner it would be less than 3 weeks. If the property is claimed as the homestead the trustee must notify the owner of a default and provide a 30 day right to cure. After that period the trustee may file the foreclosure notice and foreclose the same as above. This is how i interpet and remember the laws and notices and have had them served on me in the past. If I am wrong will someone please correct me. He can also declare bankruptcy to help himself get caught up under Chapter 13 or even a Chapter 7 where trustee can sell the property for the debtors. A better alternative may be contacting the loss mitigation dept of the loan holder and try to work out a payment plan of some type. I hope I helped answer you question.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile

PS It could take even longer depending on the particular mortgage company and how agressive they are in actually collecting past due accounts. When you said they have started the process that could mean several things like they started calling with threats of foreclosure or they have actually sent the default notice. Lets us know how this turns out and if we can help further. Someone may want to buy the property too.

Thank you for the reply!

The house is not an investment property as far as I know…Him and his family live in it. I had him call the mortgage company to get an idea of how long he has before they foreclose but they wouldnt give any timeframe…they basically said they will stop the process when he pays the due amount.

Shouldnt they have told him he had X days before they foreclose?

They probably did not read the book “how to win friends and infulence people” and just do not care. After collecting for a while and working for a huge company I am sure they get kind of numb and uncaring. All they need to do is serve the notice of default and foreclosure. Perhaps too they can not tell how long because that may be construed as practicing law. I have asked the same question before of a mortage company and got pretty much the same no answer.

Good luck to them

Ted Jr

right to cure…

It’s a 20 demand for the money and then the 21 days to the auction…

if planned perfect it’s takes right at 45 days…

Which is really fast…

David Alexander

Hi David -

Nice to see you posting every once in a while. Staying busy, I hope?

Do you have any idea whether or not John Behle is going to teach another paper course?

Thanks,

Eric C

PS - Red Oak? What’s in Red Oak?

by email…

He says he has No real plans… to do it again…

I told… we just needed an excuse to all get together again…

Let me tell you… It’s much slower pace of life…

Douwn Heeer in REEED OAK, TEXXAS…

Stayin’ pretty busy…

Creatin courses… Speakin’ a little… plottin’ the next business(wireless internet)… buyin’ a house, two or three on occasion… Sellin’ a house, two, or three on occasion… (They are not one and the same) rampin’ up BanditSigns.Com to a bigger place… and creating some more internet Real Estate… WeFinanceHouses.Com

Yourself… ??

How’s Austin… You still back and forth… doin’ the computer stuff…

Mostly deals… what holds…

David

Thanks for the 20 day notice. i was not sure and I am very glad you corrected me. Like you said if you are under the gun it happens really fast. Thanks again

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile

Well I have been trying to help my one friend I was telling you guys about. I couldn’t lend him enough money to catch up on his payment though, and today is the last day. Now from what you guys have kindly told me, he’s going to get the notice of foreclosure which will give him 21 days, right? TedJr, David, and everyone, thanks so much for giving me the advice. So when you said the auction is every first Tuesday of the month, that’s like a little over a week from now for december, would his house go on auction this december? or in january after the 21 day? Also, i’m not sure what this means but I have been researching around and some people keep talking about jurisdiction and non jurisdiction (or something like that) and how that makes a difference in the time line also. Can you guys help me figure out the exact time line of what’s going to happen to my friend in tx? I’ll invite him to move here to California, but I want to know how soon the house would go on auction and he would need to move? Thank you very much agian for all your advice, I really really appreciate it.

Trustee has to post at the courthouse notice of Trustee’s sale 20 days prior to the sale. If he has not posted and sent certified to last known address then it can not be sold the coming 1st Tuesday in December. Most banks etc will send a demand letter sooner than this declaring that the entire note is due and must be paid in full. He still has the right to reinstate the loan and pay the back payments. If it is his homestead this is required in addition to the posting.

If it has not been posted then the trustee could post it in early December for the January sale. Even after the sale the mortgage company or the buyer of the property will have to serve eviction papers and evict him if he is still there. This too will take 4 to 6 weeks. He can drag that out by having a trial by jury and waiting until the last day to answer the eviction. He could atay there for months still.

Hope this helps some

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile

Thank you very very much Ted for clearing things up. All I know is he just got the notice of defualt, and in there it says a notice of foreclosure will be sent to him and the promisssory note will be accelated making hime owe the entire balance of the loan. Since today was the last day of the 20 days notice of default, the house shouldn’t have been posted at the courthouse already, right? Or could they have been doing it all this time? If I understand you correctly, it sounds more like the house would start to be posted at the courthouse AFTER today right? which means they cannot put it on auction until January right? Thank you very much again for all your knowledge, this really helps!

The first Tuesday in January would be the earliest that it could be sold if posted in December. He will have a home for Christmas.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile

Rommel

Does your friend want to sell his house. I may be able to help there too !!

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile

Thanks as always for your advice Ted, My friend says he would sell the house if he could, but his family would need to stay in the house until end of January so he can plan their move to California. Would he get any cash out of this deal at all? Or would he just have to sell for what he owes on the mortgage? Thanks again Ted for your advice.

From everyone’s input, the house will probably be put on auction next tuesday (Jan 6). But they havent received the 21 day notice or any notice since the first 20 day notice that ended in early Dec.
They havent even received a notice saying the house will be on auction.

We have been told by a RE investor that the house may not be up for auction until March due to the fact that there is a home equity loan on the house. What does that mean? Is that true? Is it actually possible that the owners can stay in the house until March?

Is it too late to save the house?
Or even sell the house?

Seeking any advice or info soon!

Thanks!

I am buying a condo that had a home equity loan on it. The lender has to go to court and get the judge or jury to place a court order that the lender has the right to foreclose on the property. Then the 21 day notice of trustee sale will need to be posted and mailed to last know address of owner. It could easily be March. I remenber looking at the deal but they wanted $15,000 which was too much, in my opinion. It is not too late to sell. The deal can actually close the day of foreclosure. An attorney can file a motion too to delay the foreclosure if necessary and the bank could grant a delay if there is a buyer you is prequalified. There are several ways to delay and cure or sell the property. Investors like myself want a deal where there can be some money made. To buy and pay cash and fix up and pay hard money rates and commissions and fees it will take a deal at or near 70% of retail to accomplish this. The lender too way be willing to do a short sale which is selling for less than the amount owed to them. The condo that I am buying is selling for $28,000 and $56,000 was originally owed. It is a REO and is owned by the bank. I hope I helped some. I used to tell my dad that he would tell me a whole lot more than I needed to know and here I am probably doing the same. Good luck with it. Let me know if I can help some more.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile

Just keep talking ted. Its all good information.

Larry Johnson
pshmo3@yahoo.com

Hello Everyone,

My friend’s house in Texas is going up for auction this Tuesday.
Ted Jr was right!

They plan to move out but how long do they have in the house after Tuesday before someone comes in and forces them out?

Thanks in advance!

Rommel

I posted it on the other thread…

That you put up…

David

Hello Everyone!
I want to thank everyone for all the excellent advice!
So far everything has gone well and my friend’s family was able to move out with out any problems.

Now that they have left, is their anything they need to do or are responsible for?
Such as calling someone to let them know they have left, so that the house can go on sale? What is the normal procedure or process at this point?

They also dont want a big sign on the door saying “abandoned” or any other type of notice. What can they do to prevent that?

And they had to leave some stuff behind, are they responsible for the removal of those things? Or will they be left on the curb or lawn?

Im assuming that letting someone know that they are gone would speed up the process with the house, right?

Thanks in advane!