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Lawyer: If Repossession is Imminent, Stop Making House Payments


rhonda15

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Some practical tips from a prominent foreclosure/repossession defense attorney (written mainly for a US audience but I'm sure much of it applies here):

You have to give lawyer Mark Stopa points for bluntness.

He's one of a number of Tampa Bay foreclosure defense attorneys who have been marketing a simple strategy:

If you suspect foreclosure is imminent, stop making your monthly house payments. Hire a lawyer to frustrate the bank. Use the yearlong delay to build a nest egg with the deferred house payments. Enjoy living in the house mortgage-free.

"The biggest mistake homeowners make is to keep paying when they know they're in trouble," Stopa said this week...

His prime delaying tactic is asking a judge to dismiss a case under the loophole that the originating lender isn't the same one initiating the foreclosure. It can take bank attorneys half a year to sidestep the legal minefield.

Stopa assumes bankers are more amenable to modifying and refinancing mortgages once they've been slapped around a bit. He said lenders have stiffed consumers of their share of billions of dollars of stimulus the government poured into the banking system.

Delaying foreclosure can lead to ethical 'heebie jeebies' - St. Petersburg Times

My heart goes out to anyone having difficulties and I am very thankful I am not in that position - though I have a brother who is now in considerable negative equity (but he should be ok as long as his job holds out).

If anyone is having difficulty it is obviously worth getting expert advice (because you can be damn sure the banksters are).
 
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He3

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American law is not Irish law.
 

rhonda15

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American law is not Irish law.
Are you a lawyer?

If so please point out to me why the above would not be an option?
 

He3

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As has been pointed out here and in the media before, in the US a defaulting homeowner generally is freed from any continuing debt when they hand back the keys. No further liability follows them.

In Ireland they remain liable for the balance of the debt if the sale proceeds are inadequate to clear it in full.
 

ManOfReason

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I would have to agree to a certain extent. If you see no way to avoid eventual foreclosure, e.g. you are in a 750K house that is now only worth 500K and you have 50K in other debths and your household income has dropped by 40-50% and you can't even make the interest only payments, then tell your no-longer-friendly bank manager that you are in a bind but that you are expecting a parent to sell a site soon and give you 75K soon (or some other ****-and-bull story) and then you will clear the arrears blah blah blah....anyway hopefully you can string it out for a couple of years rent free. Remember however your credit will be toast and you will still owe the bank the outstanding money (plus fees and penalties) after the house is repossessed so you might want to make plans to emigrate with your savings to a country a long long way away or they will hound you for life.
 

cactusflower

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Offering or taking legal advice on an internet forum isn't the best idea, but rhonda15 does suggest getting expert advice.

In the US, when someone defaults on a mortgage, they can hand the house back and owe nothing.
In Ireland and the UK, the bank will sell the house and if they get less for it than you owe, you still owe the difference and they'll pursue you for it. +You won't be able to get another mortgage. in future.
 

rhonda15

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@He3

Yes I know that.

The point is - what is the point of continuing to crucify yourself trying to make monthly payments when in all liklihood you will get an eviction notice anyway?

The strategy here is to give yourself a little breathing space and get a nest egg together for your near to medium term situation.

In the long term I'm sure the banks will be glad to get anything back on their investment and maybe you can negotiate yourself a better term.


p.s. whose side are you on anyway?
 

He3

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Contrast what happens when the developers stop paying back their development loans with what happens when a homeowner stops paying.

For an insight into government attitudes, start by reading the NAMA Bill which says the developer's home generally cannot be touched.
 

NewGoldDream

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For an insight into government attitudes, start by reading the NAMA Bill which says the developer's home generally cannot be touched.
I know it's not the subject of this thread. But you got a link to the section or any debate on that aspect. Know little about the NAMA legislation, but have heard a few ask about this aspect.
 

He3

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feargach

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Are you a lawyer?

If so please point out to me why the above would not be an option?
In the USA, once you lose the house, the bank cannot touch you.

In Ireland they can chase you until they are paid back in full.

Refusing to pay the bills makes it more easy for the bank to take the house from you in Irish law.

This is terrible, horrible advice in an Irish context. None of it is relevant to us, and activities that might benefit aclient in the USA will hurt them here.

All told, this is a real toilet of a thread and it should be deleted in case some fool sees the title and destroy his family's life.
 

rhonda15

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In the USA, once you lose the house, the bank cannot touch you.

In Ireland they can chase you until they are paid back in full.

Refusing to pay the bills makes it more easy for the bank to take the house from you in Irish law.

This is terrible, horrible advice in an Irish context. None of it is relevant to us, and activities that might benefit aclient in the USA will hurt them here.

All told, this is a real toilet of a thread and it should be deleted in case some fool sees the title and destroy his family's life.
If you had read my previous comment #7, you would see that i acknowledge the differences between the US and Ireland.

I ask again:

"The point is - what is the point of continuing to crucify yourself trying to make monthly payments when in all liklihood you will get an eviction notice anyway?

The strategy here is to give yourself a little breathing space and get a nest egg together for your near to medium term situation.

In the long term I'm sure the banks will be glad to get anything back on their investment and maybe you can negotiate yourself a better term."


In my OP i also advise getting expert opinion if in any difficulty - i also do not flatter myself that anyone is seriously going to look to some thread on a political forum as a foundation to organise their affairs re. a mortgage.

Just something to think about is all.
 

Fing Fers

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Something has to be done with mortgage holders in arrears, they took a risk in securing a mortgage, the bank took an equal risk in giving the mortgage. The people with these arrears have lost their jobs through no fault of their own, and they cant find a new job because the entire country is screwed! How is repossession is this situation justice? We should be entitled to a better solution after all, is a mortgage not an equal risk?

Ireland, the land where banks draw blood from turnips.
 
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I actually think its pretty decent advice and have worked with repo's.

If you owe 750k and property is worth 500k and you cannot even pay mortgage and will be repoed anyway then putting some cash aside for a number of months to enable you to survive is best advice.

Makes no diff to bank whether you owe 750k or 748k.

Only recommened when you have exhausted all options.
 

feargach

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I actually think its pretty decent advice and have worked with repo's.

If you owe 750k and property is worth 500k and you cannot even pay mortgage and will be repoed anyway then putting some cash aside for a number of months to enable you to survive is best advice.

Makes no diff to bank whether you owe 750k or 748k.

Only recommened when you have exhausted all options.
Well, the judge might be tempted to allow the bank to get its paws on the savings, given that they have a legal right to them in Ireland.

AFAIK, if the bank chooses not to attach the saved dosh, it is for public relations purposes. If they want it, they can take it, I think.

So if your bank is the kind that does not mind bad PR, you might be in trouble trying this.
 
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Well, the judge might be tempted to allow the bank to get its paws on the savings, given that they have a legal right to them in Ireland.

AFAIK, if the bank chooses not to attach the saved dosh, it is for public relations purposes. If they want it, they can take it, I think.

So if your bank is the kind that does not mind bad PR, you might be in trouble trying this.
IF you are stupid enough to put the cash into an account with your name on it then you deserve to lose it. Full declaration of accounts in your or your partners name must always be made.

The fact that your mum is holding cash on your behalf in her Credit Union account NOT controlled by you is a moot point. There is a diffrence between 5-6k and 50-60k, one is trying to keep yoirself afloat the other is deliberate deception.
 

feargach

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Aaahhhh, ok then, I see where you are with this...
 

Dillinger

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I have a friend who walked out of his property last year. He just shut the door behind him and never went back. He is not some scobie, or a bit touched, he has phd in physics. The guy just decided one day that he no longer wanted to pay the bank money for an apartment he didn't really want, and unlike most people, this guy went through with his threat to walk away. He certainly has not been jailed, he obviously is now credit black listed. But, the guy has never been happier, he now uses his dosh to travel around Europe, going to a different location each month. The guy feels he did the right thing, he is now doing what he wants, rather than crawling up the property ladder, which is what society wants.
 

oceanclub

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Are you a lawyer?

If so please point out to me why the above would not be an option?
You know, it's kind of funny when you bring your whacky Yankee conspiracy theories to this website. Not when you start thinking you're Orly Taitz and giving out legal advice to citizens under a completely different juridiction that might see them end up losing their house.

P.
 

rhonda15

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You know, it's kind of funny when you bring your whacky Yankee conspiracy theories to this website. Not when you start thinking you're Orly Taitz and giving out legal advice to citizens under a completely different juridiction that might see them end up losing their house.

P.
For the umpteenth time - the point is if you know you are going to lose the house anyway - why not try the above strategy?
 

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