San Diego Housing Market News and Analysis
My neighbors house was finally foreclosed on
User Forum Topic
Submitted by Escoguy on February 27, 2018 - 10:25pm
Having moved back in early 2013, (we were away 10 years), we promptly went to work to buy three short sales as the prices at the time were very opportune.
In our new neighborhood, we met a family and over the course of time, found out they were in financial distress.
Much to my surprise, I was told they had stopped making payments a year or two prior so at least in 2012.
As I was purchasing short sales, I did suggest this but the idea went nowhere with them.
Needless to say, over the past five years, I developed a reasonable relationship with the father of this family. We would occassionally talk about a wide range of topics including real estate.
When I asked how they managed to avoid foreclosure for 5-6 years, he would say things along these lines:
or "we went to a seminar where an attorney told us if we resubmit loan modification documents" that the bank would restart the clock on the foreclosure.
He also made a cryptic comment that some government program might be paying the mortgage when they submitted the modification documents.
I don't think they filed for bankruptcy but it has just intrigued me that they managed to put this off for so long. For a while I thought perhaps the bank had defective documents and couldn't foreclose but they finally did in December and now the house is being resold. The bank is Wells Fargo which bought it but the original loan was a Bear Sterns loan from 2008.
I'm tempted to call a broker at Wells Fargo I used to work with who may be able to provide some background.
Has anyone heard of a foreclosure being delayed so long in California?
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