Posted on: 06th Jan, 2010 06:37 pm
I had a townhouse in VA which foreclosed in 2008. I tried hard to do the short sale with the bank and deed-in-lie, both didn't work and bank foreclosed the house.
The house had 2 mortgaged both from IndyMac (first mortgage had interest only loan 80%). Now IndyMac sell the 2nd loan to GreeTree, they called and threating me to work with them on the 2nd mortgage amount, and I am not sure what options I have and what to do. I do have 2nd home where I am living, that is also 95% financed and in VA
GreeTree said that they can get the deficiency judgement against me and garnish my income. is that true?
I did try to short sale and submitted the offer to the bank but they took so long and the offer expired.
My question is ... is it possible for me to negotiate down the amount in order to be done with it? How would I go about doing that? What are the tax implications upon the scenario?
Should I negotiate with them or wait until they get the judgement? Could I possibly pay 10% of $89k to be done with this or will that not work? In the larger picture of the number of foreclosures happening in this country, how successful are banks/law firms/collectors on collecting on mortgage deficiency judgements? specially in VA
What about the rest of the amount on first mortgage? the first mortgage also have around 85K in deficiency. can they ask that amount as well?
The house had 2 mortgaged both from IndyMac (first mortgage had interest only loan 80%). Now IndyMac sell the 2nd loan to GreeTree, they called and threating me to work with them on the 2nd mortgage amount, and I am not sure what options I have and what to do. I do have 2nd home where I am living, that is also 95% financed and in VA
GreeTree said that they can get the deficiency judgement against me and garnish my income. is that true?
I did try to short sale and submitted the offer to the bank but they took so long and the offer expired.
My question is ... is it possible for me to negotiate down the amount in order to be done with it? How would I go about doing that? What are the tax implications upon the scenario?
Should I negotiate with them or wait until they get the judgement? Could I possibly pay 10% of $89k to be done with this or will that not work? In the larger picture of the number of foreclosures happening in this country, how successful are banks/law firms/collectors on collecting on mortgage deficiency judgements? specially in VA
What about the rest of the amount on first mortgage? the first mortgage also have around 85K in deficiency. can they ask that amount as well?
GreenTree is your present lender. Thus, they can claim the deficiency from you now. If you do not pay, then the lender will have the rights to garnish your income. It is always possible for you to negotiate with your lender. You'll have to contact your lender, inform him about your hardship and ask for a repayment plan. You should immediately start negotiating with the lender. It will be the discretion of the lender whether or not he would accept 10% of $89k. The first lender may also ask for the deficient amount.
So is that mean, once I settle with them on lets say 10% amount, that will fix my credit as well? and they won't come after the remaining amount?
I am taking this assumption, coz thats what the settlement means to me.
I am taking this assumption, coz thats what the settlement means to me.
Hi Guest!
Welcome to forums!
If you settle the debts for 10% of the total amount, then the lender will not come after you for the rest of the amount. However, there are chances that the lender will report the forgiven amount as your income and you may have to pay taxes on it.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you settle the debts for 10% of the total amount, then the lender will not come after you for the rest of the amount. However, there are chances that the lender will report the forgiven amount as your income and you may have to pay taxes on it.
Feel free to ask if you've further queries.
Sussane