Posted on: 28th Nov, 2011 04:01 pm
I live in Minnesota and am currently facing a sheriff sale on my property. I have an 80/20 loan. The initial junior lien was a purchase money loan but several years ago I had to refinance with another 80/20 due to divorce (had to refinance the house solely into my name). I defaulted on the primary loan in April due to unemployment/underemployment (and yes went through all the rigamarole to try and get HAMP which I qualified for but Bank of America kept wrongfully declining me, I even got the MN attorney generals office involved). I am presently current on my 2nd mortgage. I owe 155K on the primary and 25K on the secondary (180K total). The fair market value of my home is somewhere around 130K (yes I know, that sucks the my home has lost 70K of its value since purchase despite home improvements, what sucks more is having paid extra to principal every payment for the last 7 years only to be bent over the proverbial barrel because I lost my job) My questions are many and somewhat complex, so even a referral to a help line (other that the hope hotline who can't help with this issue, I've tried) would be useful
1. What becomes of the second mortgage after sheriff sale? I will have to move and rent and cannot afford to pay rent on a new place and mortgage on house I no longer even own so it will go into default as well. What is their recourse against me? I have conflicting accounts as to the junior lien holders rights pertaining to purchase money loans, non-recourse, and foreclosure by advertisement.
2. In spite of all this mess, I managed to get myself married 2 months ago (family paid for it, and it was a bargain budget wedding, so please withhold the judgements as to why I would get married while losing my house) The house (and mortgages) are in my name, what if any effect/recourse will there be on my husband?
Any (intelligent) help/advise would be greatly appreciated
1. What becomes of the second mortgage after sheriff sale? I will have to move and rent and cannot afford to pay rent on a new place and mortgage on house I no longer even own so it will go into default as well. What is their recourse against me? I have conflicting accounts as to the junior lien holders rights pertaining to purchase money loans, non-recourse, and foreclosure by advertisement.
2. In spite of all this mess, I managed to get myself married 2 months ago (family paid for it, and it was a bargain budget wedding, so please withhold the judgements as to why I would get married while losing my house) The house (and mortgages) are in my name, what if any effect/recourse will there be on my husband?
Any (intelligent) help/advise would be greatly appreciated
Hi Guest!
Welcome to forums!
After the sheriff's sale, you will still be liable for paying off the second mortgage if the second mortgage lenders are not paid off in full. The second mortgage lender will come after you in order to recover the debts though you move out of the property.
As your spouse is not included in your debts, it won't have a negative affect on him though your property goes through a foreclosure/sheriff's sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
After the sheriff's sale, you will still be liable for paying off the second mortgage if the second mortgage lenders are not paid off in full. The second mortgage lender will come after you in order to recover the debts though you move out of the property.
As your spouse is not included in your debts, it won't have a negative affect on him though your property goes through a foreclosure/sheriff's sale.
Feel free to ask if you've further queries.
Sussane