Posted on: 12th Sep, 2007 04:28 pm
Blue - thank you for the info. I'll give you more specifics in hopes you can provide additional information. 1st mtg is $187K & 2nd is $46K. 1 yr ago the home was appraised for $236 (this was when we got 2nd mtg). Due to the now depressed area we are seeing homes like ours selling for $215-220. We have had on the market for 10 mo with no offers (now lisetd for $219,900 which will put us upsidedown $38K by the time we po 1 & 2 mtg, taxes and realtor fees). Our realtor said that it is a "choke" mkt for the $200-300K houses- none selling. We are paying $2000 on 1st & $600 on 2nd. We can't survive any longer. We are renting and have offered land contract on this house with pymts of $1000.
When I tt our mtg co their on line apprasial was $200K. How accuate is that? I've read that a 2nd mtg may not work for DIL? What is your opinion. We DO NOT want to file bankruptcy or go into forclosure but we can't pay $2600 for an empty house and another $1000 here.
We relocated for my husband's job and are 800 mi away from a house that we don't need, don't want, can't pay for (but loved while we were there).
What is our best course of action. Thank you so much for your last quick response.
Dynee
When I tt our mtg co their on line apprasial was $200K. How accuate is that? I've read that a 2nd mtg may not work for DIL? What is your opinion. We DO NOT want to file bankruptcy or go into forclosure but we can't pay $2600 for an empty house and another $1000 here.
We relocated for my husband's job and are 800 mi away from a house that we don't need, don't want, can't pay for (but loved while we were there).
What is our best course of action. Thank you so much for your last quick response.
Dynee
Hi Dynees,
"When I tt our mtg co their on line apprasial was $200K. How accuate is that?"
To be sure that presently the house value is 200k, you should contact an appraiser and get a new appraisal done. As you have said that houses are selling for about 215-220k, it would be better to get a separate appraisal done.
"I've read that a 2nd mtg may not work for DIL?"
Most lenders won't agree to accept the house through a deed in lieu if there is a second mortgage lien on the house. But are the 2 loans from different lenders or the same lender?
If you had taken the mortgages from different lenders then it is unlikely that the first mortgage company would agree to accept the house through a dil. The reason is that if he accepts the house, the 2nd mortgage lien will remain on the house and at the time of sale the 2nd mortgage will have to be paid off.
You will have to bring down the price and hope that it gets sold. Foreclosure as well as bankruptcy will have very negative affect on your credit score, but you are in a difficult situation right now. Have you explained your position to both mortgage companies? What kind of solution they are offering? Is any payment modification possible on any of the loans? If the mortgage payments can be reduced and the term of the loan extended, it will give you more time to find a buyer for the house.
Thanks
Blue
"When I tt our mtg co their on line apprasial was $200K. How accuate is that?"
To be sure that presently the house value is 200k, you should contact an appraiser and get a new appraisal done. As you have said that houses are selling for about 215-220k, it would be better to get a separate appraisal done.
"I've read that a 2nd mtg may not work for DIL?"
Most lenders won't agree to accept the house through a deed in lieu if there is a second mortgage lien on the house. But are the 2 loans from different lenders or the same lender?
If you had taken the mortgages from different lenders then it is unlikely that the first mortgage company would agree to accept the house through a dil. The reason is that if he accepts the house, the 2nd mortgage lien will remain on the house and at the time of sale the 2nd mortgage will have to be paid off.
You will have to bring down the price and hope that it gets sold. Foreclosure as well as bankruptcy will have very negative affect on your credit score, but you are in a difficult situation right now. Have you explained your position to both mortgage companies? What kind of solution they are offering? Is any payment modification possible on any of the loans? If the mortgage payments can be reduced and the term of the loan extended, it will give you more time to find a buyer for the house.
Thanks
Blue
We are not late on any payments - Oct will be the first time so we have not contacted the lenders.
We have no financial resourses left to make up the difference if we sell the house at the present price...........lowering the price will dig the hole deeper.
We have no financial resourses left to make up the difference if we sell the house at the present price...........lowering the price will dig the hole deeper.
"lowering the price will dig the hole deeper."
Why would it be so?
Why would it be so?
If we can't make up the difference of what is owed while listing is at $220,900 & PO is $228-229K, selling it for $215K will add another $5K that we need to bring to closing along with $6K+ in taxes (taxes went up 57% in our area when the city of Ft Wayne annexed us so taxes are very high) plus 6% in realtors' commission. The numbers just keep climbing!!
Would you recommend contacting our lenders immediately or wait until we are 31 days late?
Thanks
Dynee
Would you recommend contacting our lenders immediately or wait until we are 31 days late?
Thanks
Dynee
forgot to mention - 1 & 2 mtg are with 2 different lenders.
As there are 2 lenders, a dil in lieu is difficult. The 1st lender won't like to take back the house with a lien over it.
You should get in touch with the lender and tell him about the financial difficulty you are having in continuing the payments.
Some organizations have foreclosure prevention programs. I would suggest that you contact some of them to figure out if your home and credit can be saved and foreclosure avoided.
Miller
You should get in touch with the lender and tell him about the financial difficulty you are having in continuing the payments.
Some organizations have foreclosure prevention programs. I would suggest that you contact some of them to figure out if your home and credit can be saved and foreclosure avoided.
Miller
Hi Dynees,
I agree with Miller that the first lender may not accept the deed-in-lieu because of existing second mortgage or junior lien on the property. In that case, he will have to clear the lien himself which he may not agree to do.
To know more about the reason why lender will not accept the deed-in-lieu with a junior lien on the property, you may refer to http://www.mortgagefit.com/predeal/deedinlieu-juniorlien.html
I agree with Miller that the first lender may not accept the deed-in-lieu because of existing second mortgage or junior lien on the property. In that case, he will have to clear the lien himself which he may not agree to do.
To know more about the reason why lender will not accept the deed-in-lieu with a junior lien on the property, you may refer to http://www.mortgagefit.com/predeal/deedinlieu-juniorlien.html
What is a short sale and how do we pursue that avenue. I need to make calls to the lenders today and want to ask all the appropriate questions.
Thanks for all the info.
Thanks for all the info.
Forgot to ask how this avenue would affect our credit.
Is there anyone available to explain short sale pros & cons along with affect it may have on credit??
Hi Dynees,
In a short sale, the lender accepts to receive an amount less than what is left on the mortgage.
But you need to ask the lender whether he will accept a short sale or would rather select to foreclose.
From the point of your credit profile, a short sale is no better than foreclosure. With a short sale also your credit score will go down and affect your future borrowing ability.
In a short sale, the lender accepts to receive an amount less than what is left on the mortgage.
But you need to ask the lender whether he will accept a short sale or would rather select to foreclose.
From the point of your credit profile, a short sale is no better than foreclosure. With a short sale also your credit score will go down and affect your future borrowing ability.
If the short sale has the same negative affect as a foreclosure why not let the house go into foreclosure? Or just file bankruptcy? Please explain the affects of each..........thanks!!
With a short sale you can request the mortgage company to waive their rights to claim deficiency judgment. And it is possible that they agree to it. The reason is that a short sale helps him avoid few costs that he has to incur if he forecloses. These costs are like eviction cost, attorney fees, property damage, and listing expenses for getting the house sold using a real estate agent.
Hi Dynees,
A foreclosure has the worst effect on a credit report of a borrower compared to bankruptcy or short sale. The affect of a short sale on credit report is much less damaging. After a short sale, a person have to wait for a shorter period of 18 months before buying another home. But a person has to wait for about 36 months after a foreclosure to be eligible for another loan.
A foreclosure has the worst effect on a credit report of a borrower compared to bankruptcy or short sale. The affect of a short sale on credit report is much less damaging. After a short sale, a person have to wait for a shorter period of 18 months before buying another home. But a person has to wait for about 36 months after a foreclosure to be eligible for another loan.
thank you again for the info.
What is the timeframe for purchasing another home after bankruptcy? The same as foreclosure? Is a foreclosure automatic with a bankruptcy?
What is the timeframe for purchasing another home after bankruptcy? The same as foreclosure? Is a foreclosure automatic with a bankruptcy?