The new rent-free: No mortgage payments, no worries- NYT
This snowball is gaining speed and getting much larger.
The courts are overloaded taking almost 2 years to adjudicate foreclosure proceedings.
The attorney in the article charges $1500 and will delay foreclosure by forcing the lender to prove its case.
Even if you have âno defenses,â the form letter says, âyou may be able to keep living in your home for weeks, months or even years without paying your mortgage.â
Many mortgages were sold by the original lender, a circumstance that homeownersâ lawyers try to exploit by asking them to prove they own the loan.
More than 650,000 households had not paid in 18 months, LPS calculated earlier this year. With 19 percent of those homes, the lender had not even begun to take action to repossess the property â double the rate of a year earlier.
In Pinellas and Pasco counties, which include St. Petersburg and the suburbs to the north, there are 34,000 open foreclosure cases, said J. Thomas McGrady, chief judge of the Pinellas-Pasco Circuit. Ten years ago, the average was about 4,000. âThe volume is killing us,â Judge McGrady said.
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Assuming you bought your home for $300K and have $250K mortgage. Your property is only worth $200K in today's market and your note and taxes are $3K a month.
If you follow this attorneys advise and stop paying and let him tie it up for just 1 year you save and squeeze $36K of equity out while living rent free. If he can stall it out for 2 years, You save $72K effectively making a profit on your property investment while living rent free.
The case load is only increasing and the banks certainly don't want to spend $25k in legal fees foreclosing on a property that is already a big loss. By year 3 the attorneys may be able to make a low ball settlement with the lender for $100K and you get your house mortgage free from what you've saved. If not you saved $36K - $100K to go out and buy a new house for cash.
This snowball is gaining speed and getting much larger.
The courts are overloaded taking almost 2 years to adjudicate foreclosure proceedings.
The attorney in the article charges $1500 and will delay foreclosure by forcing the lender to prove its case.
Even if you have âno defenses,â the form letter says, âyou may be able to keep living in your home for weeks, months or even years without paying your mortgage.â
Many mortgages were sold by the original lender, a circumstance that homeownersâ lawyers try to exploit by asking them to prove they own the loan.
More than 650,000 households had not paid in 18 months, LPS calculated earlier this year. With 19 percent of those homes, the lender had not even begun to take action to repossess the property â double the rate of a year earlier.
In Pinellas and Pasco counties, which include St. Petersburg and the suburbs to the north, there are 34,000 open foreclosure cases, said J. Thomas McGrady, chief judge of the Pinellas-Pasco Circuit. Ten years ago, the average was about 4,000. âThe volume is killing us,â Judge McGrady said.
---------------------------------------------------------------------------------
Assuming you bought your home for $300K and have $250K mortgage. Your property is only worth $200K in today's market and your note and taxes are $3K a month.
If you follow this attorneys advise and stop paying and let him tie it up for just 1 year you save and squeeze $36K of equity out while living rent free. If he can stall it out for 2 years, You save $72K effectively making a profit on your property investment while living rent free.
The case load is only increasing and the banks certainly don't want to spend $25k in legal fees foreclosing on a property that is already a big loss. By year 3 the attorneys may be able to make a low ball settlement with the lender for $100K and you get your house mortgage free from what you've saved. If not you saved $36K - $100K to go out and buy a new house for cash.
