Mortgage companies will likely delay foreclosure if sale is imminent
Q. Our house has been in foreclosure for a few months. We have been trying to sell it and recently received an offer. Unfortunately, the buyer cannot close until September, which is past the time we have to pay off the mortgage. We have been told the house will go to "sale" in mid August. We have some equity in the home we are trying to save, and of course we are concerned about our credit.
Isn't there anything we can do to save the sale?
A. If you retained an attorney for your sale, he should contact the attorney for the mortgage company and request an extension of the sale date. The last thing most lenders need is another property in their inventory. Presuming you could establish to the lender that your sale is solid, it is hard to believe they would not extend the foreclosure sale a few weeks to allow you to complete your sale.
Q. I've been reading your articles about foreclosures and I have a question. My husband owned a home when we got married a few years ago. Two years ago he refinanced the mortgage. I was not named on the mortgage but I remember I had to sign the mortgage. They explained to me why I was signing but I don't remember the reason.
We are now way behind on the mortgage and it looks like the house will be foreclosed. It also looks like I will be getting a divorce. I am wondering if the foreclosure will affect my credit rating?
A. It sounds like when you signed the mortgage, you were simply waiving your homestead rights. Mortgage companies require this to remove a potential defense by the spouse to a foreclosure action. This will not affect your credit.
Q. I have been renting an apartment for about six months. I recently took another job that will require me to move. I spoke to my landlord and he refuses to let me out of the lease. A friend is interested in taking over the lease for the last few months. The landlord tells me I cannot sublet and that he will evict anyone that occupies the apartment except me.
Am I stuck with this place for the rest of the lease?
A. A landlord cannot universally preclude a sublet. That being said, a landlord cannot be forced to accept a sublet whose financial condition is not at least equal to that of the original tenant.
Send a letter to the landlord indicating your desire to sublet the apartment. If the landlord requested financial data from you when you first leased, submit the same financial information for the party wishing to sublet. If no financial information was required when you leased, submit financial information establishing your friend's credit worthiness.
In the event the landlord continues to refuse to accept the sublet, you will have to decide whether or not you wish to terminate the lease. If you do elect to terminate the lease, do so in writing and indicate your desire to sublet the apartment and the landlord's refusal to accept the sublet. Send the letter certified mail or deliver it personally with a witness.
If you are sued by the landlord, you could use your offer to sublet as a defense.
Attorney Tom Resnick's column appears every other week in Homes Plus. Send your questions to Tom Resnick, 345 N. Quentin Road, Palatine IL 60067, by e-mail to tdr100@hotmail.com or call (847) 359-8983.