Would you buy a foreclosure that belongs to someone you know

amother

Milk

Yesterday at 4:21 pm

amother Birch wrote:

Ok.
But what about the scenarios where someone buys a house KNOWING they can't afford the mortgage. Knowing they will fall behind. Knowing they will likely go into foreclosure unless a nes happens.
Should the community swoop in and help in those cases?

Im hearing more and more people approaching foreclosure. Especially now. People bought insane mortgages, (6k a month) hoping to get raises or better jobs. Then the job market is doing more poorly so they can't get the raises they were hoping.

Do we think it's the community's responsibility to help people out of foreclosure if they bought unrealistically.

Maybe it should be the community's responsibility to collect so everyone can buy a house in the first place.

It probably isn’t the community’s responsibility to help people out of foreclosure.

But the least we can do is to not profit off their pain and not take away a family’s home.

I would never want to live with the guilt of taking away someone’s home. Yes, I think a Jewish foreclosed home should rather go to a non-Jew.

amother

↑ OP ↓

Yesterday at 4:45 pm

amother Carnation wrote:

My relative buys houses at foreclosure auctions and resells them for parnassah.
He will not buy a house that is owned by a yid without speaking to them first. He usually calls them to find out what the situation is. Often they know about it and planned on bidding for their own house (and it would be terrible if a yid would bid against them). Sometimes they didn’t even know anything and sometimes they already worked it out with the bank and it’s a mistake that the house is on the list and it really shouldn’t have gone to the auction.
Sometimes he even helps people get their houses back and they give him money to bid for them.
So it’s complicated to buy someone’s house whom you know and I would tell you to stay far away.
Houses where the owner died and there are no next of kin or something very similar is what seems to be the safest bid.
I know from my relative that there hasn’t been much to bid on lately.

Thanks. Spoke to them directly to see if there is what to do to help. Its sorted - BH

amother

↑ OP

Yesterday at 4:49 pm

B'Syata D'Shmya wrote:

I think this is one of those posts that OP stops when she gets an answer that validates what she wants to do.

It matters not what other people think and honestly, OP didnt cause the situation nor the problem that brought the house to foreclose.
We do have a mitzvah to help a Jewish family before they fall, so I would involve Daas Torah before proceeding.

Really?
Do you work?
Because I do. And I have kids. Not on Imamother all day. Dont judge

amother

Firethorn

Yesterday at 10:44 pm

OP I hope it’s not our house😭😢

My DH and I worked years and live very frugally. We piled up every dollar we could for a down payment. DH made a decent income and With my job we bh made enough to cover mortgage and all basic expenses.
A year after Covid, (3 months after we moved into our home) the business my DH worked at for 13 years decided to shut its doors and we’ve been struggling ever since. Our income has never been the same and DH has been through many jobs but no new job is going to pay what he made at a place he worked at for over a decade.

Bh we got approved for HAF which was a covid program and they paid a big chunk of our balance. We are in constant contact with the bank and mortgage company and they are bh trying to work out a plan. They keep giving us a plan and a deadline by when we need to pay and we just can’t catch our tails.

TYH our home isn’t in foreclosure or pre foreclosure but it’s on my mind. We are relying on hashem and we know he has a plan. Selling at the moment isn’t an option and I know hashem will come through.

If another Jew would buy our home through an auction I’d have to work very hard on my middos to forgive them.

Even though legally you can do whatever you want, it’s your money but maybe try to put yourself in someone else’s shoes before making a purchase like this.

No, we’re not asking friends, family, or neighbors to band together and help us save our home, it’s not their responsibility. We are doing our hishtadlut and we have one father and that’s who will come through for us.

↑ Raizle ↓

Today at 8:56 am

amother Crocus wrote:

When you figure in the realtor fees and other expenses of selling the house it may not always be worth it. I know someone who was foreclosed on. She and husband felt that if they are going to lose the house and their down payment anyway, they may as well stay there rent free for the next two years until the foreclosure goes through and they get thrown out. Possibly something would happen in the next two years that will make them able to stay and avoid foreclosure. If not the two years of living rent free is better than the money they could make off selling the house. Plus they had enough headaches on their heads at the time . They weren't interested in the additional one of trying to sell the house and looking for a place to move to.

Why would they lose the down payment? If they sold the house, paid what they owed to the bank, they should be left with the down payment plus any increased value? Shouldn't they?
Unless like someone suggested they took out other loans against the equity

↑ Raizle

Today at 9:02 am

nicole81 wrote:

I'll answer. My ex lost his job and we wouldn't be able to afford rent anyway on my salary alone at the time, so if we were to sell it, we'd end up with nowhere to go. We had only purchased the house 2 years earlier after the bubble burst but it was still on the decline so there was no equity. So sell it for nothing and then what? Live on the streets?The hope is you fall behind a few months but then you get back on your feet.

Then we separated and he never paid child support or anything towards my kids' tuition or camp which was necessary due to my job, so there was no way I could pay the mortgage or rent anywhere and every month you don't pay the mortgage, they add it, plus late fees and interest, to what you owe. So for example if you have a 500k mortgage with a monthly payment of 3k and you don't pay it for 6 months, you don't still owe 500k, you now owe about 525k so it's a never ending deep hole.

In my situation, I banked on the long foreclosure process in NYC, especially being a single mother with a lawyer to push things off, to take that time and get a second master's degree that would qualify me in my field for a lot more money, which bh worked out and I tripled my salary and was able to get out of foreclosure before any auction was near.

But to give you an example of the hole that was made, I started with a 415k mortgage and ended up owing 680k at the end of the mess. Bh it's worth more than that now anyway, but you wanted to know how someone falls into foreclosure. It's not hard with a job loss, little equity, and not enough income to pay rent otherwise.

And for anyone who feels bad don't you worry, I actually own 2 homes now. I built myself up in my career, built my credit up, and much more bh. That was a long time ago.

Thanks for explaining and I'm glad everything turned out good in the end for you.

I guess my confusion comes from the fact that where I live housing prices have just been going up and up. If I understood correctly your house went down in value.
Thats just hasn't been a thing where I live for many years.

amother

↑ Crocus

Today at 9:07 am

Raizle wrote:

The house hadn't gone up in value so much that after paying the realtor fees, closing costs, what they owed the bank and two years of rent they would have had anything left from the down payment and other home equity.