Grantsville is the second most populous city in Tooele County, Utah, United States. It is part of the Salt Lake City, Utah Metropolitan Statistical Area. The population was 8,893 at the 2010 census. The city has grown slowly and steadily throughout most of its existence, but rapid increases in growth occurred during the 1970s and 1990s. Recent rapid growth has been attributed to the nearby Deseret Peak recreational center, the Utah Motorsports Campus raceway and to the newly built Wal-Mart Distribution Center located just outside the city. It is quickly becoming a bedroom community for commuters into the Salt Lake valley. Grantsville is bordered on the south by South Mountain, which separates Rush Valley from Tooele Valley. To the north is Stansbury Island, and on the east are the Oquirrh Mountains and the Great Salt Lake and on the west side the Stansbury Mountains. SR-138 passes through the city, heading northwest to intersect with I-80 and east to Stansbury Park. The climate is hot during the summer and cold and snowy during the winter. Although Grantsville can be affected by lake-effect snow off of the Great Salt Lake, most of the time it is too far southwest.
Is Foreclosure Ever a Good Idea?
Over the last few years, since the crash of the housing bubble and in this troubled economy, many homeowners have homes worth significantly less than what they paid, greatly diminished incomes, and other issues. Foreclosing on a home has major ramifications that can last for years, but for some, foreclosure may seem like the only option. Here, we take a look at some of the details and alternatives. Many Americans bought homes during the housing bubble which are now worth much, much less than the asking price at the time. There are many reasons home prices have fallen, resulting in underwater mortgages. As an example, entire neighborhoods were built in a booming frenzy by construction companies during the bubble. In some of these areas, the construction created a glut of housing, and many houses stayed vacant. The homeowners who bought into these ghost towns are faced with empty neighborhoods and homes valued at far less than what they owe. Other more established neighborhoods emptied out as homeowners defaulted on subprime mortgages, causing homes in the entire neighborhood to fall in value. The homes are hard to sell, even at a loss, and can be just as hard to rent out to others. And it’s no secret that incomes around the country have dropped. Most everyone knows someone who has lost a job and taken a pay cut upon returning to work. Mortgage payments which were easy to meet under better wages have now become increasingly harder to pay, and many homeowners are finding themselves struggling to stay on top of the bills. So, while some bought homes they couldn’t quite afford, lured by low interest rates and all-too-willing, unscrupulous lenders and they ended up in default. However, for many Americans, home purchases that seemed like a wise investment at the time have turned into financial disasters. Many are wondering what to do next with a mortgage that is too high, homes that won’t sell for enough to pay for the mortgage, or homes which are simply unlikely to sell at all. Foreclosure is one way out of the game, but with steep implications. It can completely destroy one’s credit rating for years to come, and make it difficult to get a needed loan later on. It could hurt a family’s chance of renting if a credit report is part of the applicant screening process, thereby limiting rental options. Any open lines of credit may be lowered once the default goes on record, and some credit card companies may change other terms. Further, there can be steep tax implications come April 15.
If a homeowner is already behind on payments, these ramifications may already apply.
The advantages of foreclosure include being able to stay without paying rent for a while. In some states, this could be a year or longer, which could buy time to catch up financially, find better employment, or otherwise develop ways to increase income. During that time, it might also be possible to negotiate new terms with the bank, especially if the home is in a difficult housing market. However, we’ve all heard the horror stories about cut-throat practices by some lenders who have foreclosed on homes illegally, so it is still very risky. An alternative to foreclosure is a short sale, although the negative impact to credit scores can be just as bad as a foreclosure on record. A short sale is an agreement with the bank to sell the house for less than what is owed, and the homeowner can be allowed to walk away with minimal cost, or given terms to pay back the deficiency which the homeowner can more easily handle financially. Often, people facing these difficult choices are advised to seek other alternatives. If it’s possible to secure more affordable living quarters (perhaps with a family member, for example), renting out the house can be an option bring in income and avoid foreclosure. However, this route can bring its own problems as well, especially if the tenants prove to be troublesome. The home will still require maintenance and homeowners fees. While advice to rent the home out can be thrown around liberally and by people who mean well, it’s not always an option. Some homeowners associations may have restrictions on renting, or it may even be banned, so it may not even be possible to rent the home. Even without a homeowner’s association, many municipalities have laws which restrict rental terms. For example, in many college towns, year-round residents have worked to pass laws that keep homes from becoming college flop houses by encouraging local government to pass laws allowing no more than two unrelated adults to live in one single-family home, or similar laws. Research on local laws will be required to determine if renting is actually an option. Of course, none of these tips can replace legal advice from a qualified lawyer. Laws vary greatly by state and region, and the unique set of circumstances any homeowner is in vary as well, so there are no simple solutions when the mortgage has turned into a monster. Foreclosure can be a way out from under an enormous burden, but not without long-term consequences. It’s important that anyone considering foreclosure consider all the options open to them and seek the advice of qualified professionals.
What are the Consequences of a Foreclosure?
A foreclosure occurs when the homeowner has failed to make payments and has defaulted or violated the terms of their mortgage loan. The process can be stressful, embarrassing, and it can have long-lasting consequences, such as:
• Eviction from your home—you’ll lose your home and any equity that you may have established
• Stress and uncertainty of not knowing exactly when you will have to leave your home
• Damage to your credit—impacting your ability to get new housing, credit, and maybe even potential employment, for many years
• May owe a deficiency balance after the foreclosure sale
• Lose any relocation assistance or leasing opportunities that may be available with other options Forfeit ability to get a Fannie Mae mortgage to purchase another home for at least 7 years.
A borrower will not go to jail if they default on their mortgage loan, but they could face criminal charges in a couple of extreme situations described below. In some states, foreclosure involves judicial proceedings. In other words, the lender must hire an attorney who initiates a foreclosure lawsuit against the borrower. The lawsuit does not involve any criminal charges against the borrower. It is merely a civil proceeding that involves the lender’s attempt to collect a debt or be given ownership of the property in exchange for the unpaid debt obligation. If a borrower fails to maintain their property prior to being foreclosed, the local municipality could issue a citation and/or a fine. Common citations include failure to keep grass cut, leaving pets behind, having an unfenced or tepid swimming pool, or leaving a house unsecured. Some municipalities will even condemn a property. If the borrower fails to address the issues and pay the fines, some municipalities have the ability to take the borrower to court. In rare cases, failure to show up for court could result in an arrest warrant being issued. If a borrower deliberately trashes a house, it is possible for the lender to sue them after the sale for destruction of property and perhaps even press criminal charges. While rare, it is done in cases where the borrower creates major damage to the house. We have seen cases of angry borrowers clogging toilets and sinks with concrete mix or stopping the drains with other things like tennis balls. They then turn the water on and leave it on. In other cases, borrowers have ripped out all the fixtures and appliances. In some blighted cities, lenders have taken the unusual step of not foreclosing since they determine that the property’s value is so low that it is better to not take it back. This is known as a bank walkaway, where the bank charges off the loan and stops the foreclosure action. Therefore, the borrower remains as the owner. The city can then issue citations against the owner for failure to maintain their property. In some cases we have seen, the owner walked away from the property only to find out years later that they still owned the property. The city may even have the right to demolish the property and bill the owner for the cost. In rare cases, failure to respond to the city’s citations or court hearings could result in an arrest warrant being issued.
How Long Does a Foreclosure Stay on Your Credit Report?
Foreclosure happens when you default on your mortgage and your lender takes ownership of the home. A foreclosure stays on your credit reports for seven years from the date of the first missed payment, bringing down your credit score. After that period of time, the foreclosure mark should automatically fall off your reports. But you can start working to restore your credit score right away.
How a foreclosure affects your credit
A foreclosure’s impact on your credit will depend on your credit standing before the negative mark hit. The higher your score, the greater the likely impact. In general, though, you can expect a foreclosure to drop your score by 100 or more points, according to a 2011 report from FICO, a credit scoring agency. It can take up to seven to 10 years for your score to recover entirely, FICO also found.
What if a foreclosure doesn’t fall off after seven years?
The credit reporting process is imperfect. That can occasionally result in a foreclosure or other derogatory mark not falling off automatically after seven years. In that case, you can dispute the credit report error. You can rebuild much sooner. Don’t let the seven-year timeline stop you from acting — you can begin working to rehabilitate your credit score right away. Help offset the negative mark by stacking up positive data on your credit reports:
• Pay all bills on time: Payment history is the biggest factor affecting credit scores. You want to build up a long track record of on-time payments so you look good to potential lenders in the future.
• Use 30% or less of your credit limits. The second-biggest factor in scores is how much of your credit limits you use, which is called credit utilization. The lower your credit utilization, the better for your score.
• If needed, look into ways to rebuild credit such as getting a secured credit card or credit-builder loan.
How Many Mortgage Payments Can I Miss Before Foreclosure Happens?
When borrowers take out a home loan, they have to start making monthly mortgage payments. As many homeowners know, it can be easy to miss a few payments. You might wonder how many mortgage payments you can miss before foreclosure happens. The answer is that you can miss four payments, or about 120 days, before you’re in danger of being foreclosed upon.
What happens when you miss mortgage payments?
As a rule, the more mortgage payments you miss, the more trouble you’ll be in with mortgage companies. Missing mortgage payments can cost you more — and with each missed payment, you’ll be inching closer to foreclosure. Paying your mortgage should be among your top priorities. Missing mortgage payments can be disastrous for your personal credit and can have an adverse effect on your credit score, for which payment history is a major factor. If you do start missing payments, you should be familiar with the penalties and what can happen after each missed payment.
First Missed Mortgage Payment
If you miss your first mortgage payment, your lender will typically offer you a grace period of fifteen days. During these fifteen days, you can send in your payment without being considered delinquent. Once this grace period is up, however, you’ll be charged a late fee. This fee is usually a fairly substantial percentage of your mortgage, such as 2 to 5 percent of the monthly payment amount.
Second Missed Mortgage Payment
If you miss your second mortgage payment, your mortgage is likely considered to be in default. At this point, the lender will probably contact you to find out why you haven’t made your payments. You should take the opportunity to explain your situation to your lender and let him know what you’re doing to resolve the situation. Your mortgage servicer will usually become increasingly aggressive about getting paid if you miss your second mortgage payment, but it gets even worse if you continue missing payments. The U.S. Department of Housing and Urban Development advises that it can help to work with a housing counselor at this — or any — point.
Third Missed Mortgage Payment
After you’ve gone about 90 days without making a payment, you’ll receive a demand letter. A demand letter informs you of the amount you are delinquent and that you have 30 days to bring your mortgage current. If you don’t pay the specified amount or make arrangements by the deadline, foreclosure proceedings might begin. You still have time to try to work out an arrangement with your lender, but it’s unlikely that they will take less than the total amount of mortgage payments you owe. If you still can’t make the payments within 90 days, however, it’s game over: The lender will begin the foreclosure process and bring legal action against you.
Fourth Missed Mortgage Payment
After you’ve missed the deadline provided in the demand letter and you are four months behind on your mortgage payments, the foreclosure process will usually begin. First, you’ll be referred to your lender’s attorneys. As a result of your delinquency, you’ll be required to pay any legal fees during this time. You could still have a chance to avoid foreclosure if you can make your payment or work something out with your lender.
If you’ve reached the foreclosure stage, you have the right to stay in your home throughout the process, but it will be difficult to get your home back. After all legal work has been completed and the lender is legally allowed to foreclose on the home, the process will begin. The first thing that will occur in the foreclosure process is that the lender will record a Notice of Default. From here, you have 90 days to pay what you owe. After 90 days, if you have not made your payments, a Notice of Sale will be recorded and sent to you by certified mail. The notice will also be published in a newspaper and posted on your home and in a public place, such as the local courthouse. After a minimum of 21 days from the Notice of Sale being recorded, the house will be put up for auction; you will immediately lose control of your home once it’s sold.
When you need a Foreclosure Lawyer call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506