When does foreclosure officially go back to the bank?

User question: Our condo is being foreclosed on on December 10. When will the condo "officially" go back to the bank? What is the current time length in Phoenix? The reason I ask is that I have been faithfully staying current with the $101 monthly HOA dues, and intend to continue paying theme until the bank is named the owner once again......I'm curious as to how long this may take, as my daughter and I will most likely vacate the condo sometime in November. Note: We tried the "Making Homes Affordable" loan modification program (my daughter was employed), but, by the time BOA came back to us with their denial, she had lost her job. I cannot pay the inflated $1,038 monthly payment. We are drowning we're so upside-down! I appreciate your input.

Answer from blueroof.com:  I will do my best to answer all your questions. First, if the foreclosure date is 12/10/10 then that is the day the bank will officially become the owner of the property. So you will have until then to stay in the home if desired. Depending on the bank, they even give you some time after that date to vacate if you haven't already.

Having gone through the Making Home Affordable plan for modification and it not working out, you may qualify for the other government plan, Home Affordability Foreclosure Alternative (HAFA), which would allow you to short sale the property and receive $3,000 at closing to cover moving expenses. This is a relatively newer program and is constantly changing so be sure to find someone that has been trained in this program and what it takes to get that done. The short sale team at BlueRoof has been through trainings on this and can help you. One of the qualifications of this program is that you are living in the property so if you are planning on moving out in November, you should start the process now to make sure you qualify. Also, during the review process on this, the bank will stall the foreclosure date which will allow you even more time in the home.

With regards to the HOA fees, we definitely recommend that you continue to pay them, as you are planning on, as a high delinquency in HOA fees throughout the community can make the community not qualify for certain types of financing. This only further complicates the situation and decreases values even further.

We are always available to answer your questions. Let us know if there is anything else that we can do for you.

*Nothing here is considered to be legal or tax advice. Any and all questions regarding tax or legal issues need to be directed to an appropriate and licensed professional.

Joe Duffin
Designated Broker for Blue Roof Realty

Please note that ABC15.com, and its paying advertiser blueroof.com which answered this question, are not qualified to offer tax advice and the best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.