Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

REALLY Upside Down, I make good money, house wont sell, what do I do?

Posted on: 28th Jun, 2009 03:46 pm
I bought a single family home as an investment in Phoenix (Ilive in California) about 6 years ago. I refinanced it a few years ago. I currently owe 160,000 on the first and 48,000 on the second (equity line of credit). The house has a market value of 40 to 50 thousand dollars. I make about 70k per year so it would be hard for me to justify a hardship. I've had it on the market for over 90 days now and no one has made an offer. I'm thinking of offering Countrywide a Deed in Lieu. Someone has told me I should offer to pay off 1/3 of the second to make it a better deal for countrywide. Since it's an investment property I assume I will be liable for all the taxes of the difference between what Countrywide sells it for and what I owe, is this true? Anyone else have any ideas?
hi joshuacastro!

welcome to forums!

though your lender accepts a deed in lieu on your first loan, you will still be liable for the second mortgage. there are chances that the lender would charge off the second loan. as far as i know, as it's an investment property, you'll have to pay the taxes and the deficient amount resulting from the sale of the property.

feel free to ask if you've further queries.

sussane
Posted on: 28th Jun, 2009 08:41 pm
Sussane,

What exactly does it mean that they will charge off the second?
Posted on: 28th Jun, 2009 08:51 pm
Hi joshucastro!

Welcome to forums!

If you are not paying your debts on time, the lender charges off the loan and then a collection agency collects the dues from you. The lender is no more interested to collect the dues from you and has thus sold it off to a collection agency.

Feel free to ask if you have further queries.

Sussane
Posted on: 29th Jun, 2009 12:42 am
Page loaded in 0.091 seconds.