Posted on: 06th Nov, 2010 03:58 pm
does anyone have an idea of how much the average foreclosure costs the bank? my home, if i'm lucky, is worth 164k. my first mortgage is 137k and the second is 61k. i was a c+ student in math, but i'm fairly certain the second mortgage is underwater by 27k. i can't afford the second and stopped paying them 2 months ago. i've read a lot of posts that say if the second mortgage forecloses, then they have to buy out the first (at full price i would assume) and also they would have to foot the foreclosure fees. not sure how much they are, but i would think the cost to do all of that would be way more than current value of 164k. so, what would be the purpose of foreclosing to get nothing? i offered a settlement of $4500 and they refused, but then said, they would consider future offers. does anyone know if banks look for a certain percentage with settlements? it's gmac; don't know if anyone has experience with them. i really don't have any more to offer them, maybe a few hundred. i would just as soon move out and use the $4500 for moving if they don't accept. is it wise to keep working with them or just get ready to leave this house. thoughts? comments? suggestions?
The foreclosure costs may vary from state. You can negotiate with your second lender for a repayment plan or a settlement offer. If the second lender is convinced by your hardship, then he will agree to your offer and help you in saving the property.