Posted on: 25th Dec, 2008 12:31 am
I dont know where to turn or who to ask, cant afford an attny, I have 3 upside propertys, largest amount on my primary residence. I am in calif, but everything I have read about deficiency forgiveness apply to purchase money only.
I know that there are thousands of us, here in calif and across the nation in my situation. I was scamed by a "financial services, insurance and securities investment" group, WFG & securities. Long story short, they refied my homes to get out my equity so that they could "invest and manage my money to position me for my retirement" Lies, deception, bait and switch, I wound up with sub-prime mortgages, they wound up with most of my cash, tens of thousands. Currently difficult to prove fraud, insurance and securities violations. (would like to hear from others in calif with similar experiences involving WFG)
what can I do? I want to walk away from my primary home since loan is 268K, market now is 185K, if I walk away from one, I can continue to float the other two.
I read on a blog that if I moved out of the home 6 months prior to forclosure bank could not go after me for the deficiency, is this true in my case?
other big problem is that COUNTRYWIDE bought my mortgages, so I would have to deal with them, from what I read, they are difficult and not very compassionate. I am close to retirement, 5 yrs, have very little invested for retirement. what are my options, would I owe on the deficiency, can they take my retirement 401K, I dont believe I qualify for bankruptcy because of my income and I am debt free other than these mortgages.
Nothing in my area is moving, we are the 8th highest forclosure city in nation. I'm willing to consider all - deed in lieu; short sale; sit and wait for forclosure; I am too old to recover from this if I must be responsible for the deficit on the primary, there is no equity in any of the 3 homes, one is rented, all have clean titles and no seconds
Everyone I ask reply with "no one can answer the questions" laws are changing weekly.....do you have any insight for me......Terry
I know that there are thousands of us, here in calif and across the nation in my situation. I was scamed by a "financial services, insurance and securities investment" group, WFG & securities. Long story short, they refied my homes to get out my equity so that they could "invest and manage my money to position me for my retirement" Lies, deception, bait and switch, I wound up with sub-prime mortgages, they wound up with most of my cash, tens of thousands. Currently difficult to prove fraud, insurance and securities violations. (would like to hear from others in calif with similar experiences involving WFG)
what can I do? I want to walk away from my primary home since loan is 268K, market now is 185K, if I walk away from one, I can continue to float the other two.
I read on a blog that if I moved out of the home 6 months prior to forclosure bank could not go after me for the deficiency, is this true in my case?
other big problem is that COUNTRYWIDE bought my mortgages, so I would have to deal with them, from what I read, they are difficult and not very compassionate. I am close to retirement, 5 yrs, have very little invested for retirement. what are my options, would I owe on the deficiency, can they take my retirement 401K, I dont believe I qualify for bankruptcy because of my income and I am debt free other than these mortgages.
Nothing in my area is moving, we are the 8th highest forclosure city in nation. I'm willing to consider all - deed in lieu; short sale; sit and wait for forclosure; I am too old to recover from this if I must be responsible for the deficit on the primary, there is no equity in any of the 3 homes, one is rented, all have clean titles and no seconds
Everyone I ask reply with "no one can answer the questions" laws are changing weekly.....do you have any insight for me......Terry
Hi nrsteri
I don't think walking away from the property will be a good option. It may lead to the foreclosure of the property. California has anti-deficiency laws wherein lenders will not be able to sue you for the deficient amount resulting from the sale of the property. However, your credit will be badly affected. It can be lowered by 250 points.
In my opinion, you can try for a short sale on the property from which you want to walk away. You can apply to the lender for a short sale. If the lender accepts a short sale and the property is sold in the market, you will be left with two properties. You can continue paying the mortgage on these two properties. Moreover a short sale will lower your credit score by 75-100 points. Thus, a short sale will have a less negative affect on your credit score. So, I think a short sale will be a better option for you.
Merry Christmas!!!
Thanks.
I don't think walking away from the property will be a good option. It may lead to the foreclosure of the property. California has anti-deficiency laws wherein lenders will not be able to sue you for the deficient amount resulting from the sale of the property. However, your credit will be badly affected. It can be lowered by 250 points.
In my opinion, you can try for a short sale on the property from which you want to walk away. You can apply to the lender for a short sale. If the lender accepts a short sale and the property is sold in the market, you will be left with two properties. You can continue paying the mortgage on these two properties. Moreover a short sale will lower your credit score by 75-100 points. Thus, a short sale will have a less negative affect on your credit score. So, I think a short sale will be a better option for you.
Merry Christmas!!!
Thanks.