Posted on: 30th Sep, 2009 08:04 pm
We were foreclosed upon in Texas (now live in WA). The house has not been sold yet. There is oustanding of approx 163k, 40k of which is a second that was gotten to enable us to get zero down financing. Now, the second, Citibank, is filing against us. What can we do ... what are our options ... what are their limitations? We really do not know what to do, we're unemployed and living with relatives.
Please check answer to you question here
http://www.mortgagefit.com/inprocess/about28732.html#124945
http://www.mortgagefit.com/inprocess/about28732.html#124945
hi boogles,
as you signed on the promissory note, you are liable to pay off the entire amount of the second loan. if your house is foreclosed and you fail to pay it off, the second mortgage holder has the right to file a lawsuit against you and sue you for non-payment. however, most of the times lenders avoid taking that route as it involves a lot of expenses. you can talk with the lenders and settle the debt for a lesser amount. the other option for you would be to file bankruptcy and get the debts discharged through chapter 7. however, the bankruptcy will remain on your credit for about 7 years and will damage your chances of qualifying for a new loan in the next 2 years.
as you signed on the promissory note, you are liable to pay off the entire amount of the second loan. if your house is foreclosed and you fail to pay it off, the second mortgage holder has the right to file a lawsuit against you and sue you for non-payment. however, most of the times lenders avoid taking that route as it involves a lot of expenses. you can talk with the lenders and settle the debt for a lesser amount. the other option for you would be to file bankruptcy and get the debts discharged through chapter 7. however, the bankruptcy will remain on your credit for about 7 years and will damage your chances of qualifying for a new loan in the next 2 years.
Good addition Jenkin