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Company Loan Type APR Est. Pmt.

Foreclosure 80/20

Posted on: 04th Aug, 2010 06:50 pm
I was out of work couldn't keep up with payments yadda yadda.
WhenI bought the condo 5yrs ago I was set up with a 80/20 mortgage with both through the same bank. The 1st (134k) was sold to another company and the original bank kept the 2nd( equity line 34k)
I believe the condo was being auctioned yesterday. I get daily phone calls from the bank who has the equity line. If the holder of the 1st did indeed auction the property yesterday, what i smy responsibility to the bank holding the equity line?
Hi qrkid!

Welcome to forums!

Though your property was auctioned by the first lender, you would be liable for paying the equity line to the second lender. The lender will come after you to recover the deficient balance. If you don't pay the deficient balance to lender, he would charge it off and assign it to a collection agency.

Feel free to ask if you've further queries.

Sussane
Posted on: 04th Aug, 2010 09:39 pm
Sussane

Thanks for your response.
Another question. So if the 2nd lender is going to come after me and I am unable to pay the debt, even if it is negotiated down, are there any options?
When I got out of work I decided to head back to school full time and only have a part time hourly job so I can survive and pay for my car.
With me losing my home to forclosure, my credit is now shot, so would it make sense to file bankruptcy in this case to somehow get out of these debts.
Posted on: 05th Aug, 2010 04:16 pm
Hi qrkid,

You can request the lender to forgive the dues. But it would solely depend upon the lender whether or not he would forgive the balance amount. You can file bankruptcy in order to get rid of your debts. You should contact a bankruptcy attorney and take his suggestions as to which chapter of bankruptcy filing is best suited for you.

Thanks
Posted on: 05th Aug, 2010 11:31 pm
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