Posted on: 21st Aug, 2008 12:39 pm
Need some objective advise please....
Current home in foreclosure - short sale extension to 9/13/08. We owe $158K on 1st mortgage and about $26K on HELOC. House has recently appraised for $117K.
I've been told different stories btwn my mortgage company, home equity line bank and the realtor as to what can potentially happen after 9/13... I need some clarification please.
My mortgage company has given me an extension to sell by 9/13 after that I will need to sign a DIL BUT must have letter of approval to do so by HELOC bank. I called my bank with the HELOC loan, told them what the mortgage company was offering ($1750) and she told me they would absolutely NEVER agree to that - they'd rather take nothing. She also told me they would then come after my hubby and I for repayment of that loan, is that true? And, if they refuse to sign off on the lien what can the 1st mortgage company do?? My realtor says the HELOC bank is full of it and that their trying to scare me into working out a repayment plan....
If someone could please let me know what to expect REALISTICALLY I would greatly appreciate it... just trying to see who is telling me the truth and who is blowing smoke ya know?!?
PS - honestly not sure if house will short sale or not at this point.
Thanks!
Current home in foreclosure - short sale extension to 9/13/08. We owe $158K on 1st mortgage and about $26K on HELOC. House has recently appraised for $117K.
I've been told different stories btwn my mortgage company, home equity line bank and the realtor as to what can potentially happen after 9/13... I need some clarification please.
My mortgage company has given me an extension to sell by 9/13 after that I will need to sign a DIL BUT must have letter of approval to do so by HELOC bank. I called my bank with the HELOC loan, told them what the mortgage company was offering ($1750) and she told me they would absolutely NEVER agree to that - they'd rather take nothing. She also told me they would then come after my hubby and I for repayment of that loan, is that true? And, if they refuse to sign off on the lien what can the 1st mortgage company do?? My realtor says the HELOC bank is full of it and that their trying to scare me into working out a repayment plan....
If someone could please let me know what to expect REALISTICALLY I would greatly appreciate it... just trying to see who is telling me the truth and who is blowing smoke ya know?!?
PS - honestly not sure if house will short sale or not at this point.
Thanks!
Realtotr wants a al. I would not listen to them when it comes to legal advis. My unerstanding is tha the second lender can stand in the way of te sell and can hold out for as much as possible.
Good Luck
Good Luck
Thanks, I was afraid of that. I guess I'll just have to see how this all plays out. I'm hoping we can somehow do a DIL but will probably end up in foreclosure and in that case what do I need to expect?
hi aimzube.
welcome back. even if the second lender don't accept the deed in lieu the also the first mortgage lender can accept the deed in lieu. and in this case you will have to pay off the second mortgage lender. so can you pay off the second mortgage lender?
btw if you face foreclosure then you may have to pay deficiency judgment to both the lenders.
best of luck,
larry
welcome back. even if the second lender don't accept the deed in lieu the also the first mortgage lender can accept the deed in lieu. and in this case you will have to pay off the second mortgage lender. so can you pay off the second mortgage lender?
btw if you face foreclosure then you may have to pay deficiency judgment to both the lenders.
best of luck,
larry
Thanks for the info. Unfortunately it's about $26K to payoff. I think I can settle making monthly pymts which will be for the rest of my life btwn interest, penalties, etc... I just wish they were more cooperative.
It's just so frustrating that when I tried to work things out with them months ago they were terrible to work with. Never do business with Charter One Bank.
It's just so frustrating that when I tried to work things out with them months ago they were terrible to work with. Never do business with Charter One Bank.
Welcome back.
Is it a non-recourse loan? If so then the lender cannot come after you for the deficiency judgment. So read the loan documents carefully and check out whether this is a non -recourse loan or not. Let me know if you have any more queries.
Is it a non-recourse loan? If so then the lender cannot come after you for the deficiency judgment. So read the loan documents carefully and check out whether this is a non -recourse loan or not. Let me know if you have any more queries.
Hi Aimzube,
Welcome back to our forums.
Possibly the bank wants you to repay the Heloc fully even though your property may be on sale. They wouldn't get much from the sale as because it's actually a short sale. So, they may come after your for repayment.
If at all short sale doesn't work out, you'll have to go for a deed-in-lieu as the company has suggested. Ok, as you will be giving away property to the lender through dil, it's important that the bank approve it because they too have an interest in your property. That's the reason you need to get an approval letter from the bank.
I think you should discuss the situation with your mortgage company. May be they can negotiate with the bank on your behalf because they too need to get back what they've invested in your home.
Good luck
Welcome back to our forums.
Possibly the bank wants you to repay the Heloc fully even though your property may be on sale. They wouldn't get much from the sale as because it's actually a short sale. So, they may come after your for repayment.
If at all short sale doesn't work out, you'll have to go for a deed-in-lieu as the company has suggested. Ok, as you will be giving away property to the lender through dil, it's important that the bank approve it because they too have an interest in your property. That's the reason you need to get an approval letter from the bank.
I think you should discuss the situation with your mortgage company. May be they can negotiate with the bank on your behalf because they too need to get back what they've invested in your home.
Good luck
At the enterprising American spirit! Take and money and when things go bad, blame the Scots.
Short sales or DILs are a night mare when there is a second lien; pretty near impossible. Your Realtors suggestion of $1,750 to settle a $26,000 debt was almost laughable. By the way was (s)he throwing part of the sales commission into the pot? My guess is
Look at the situation from the lenders™ point of view. A lot of the legal fees have already been incurred and now theyre on the downward slope to completing the foreclosure. Surprised the first mortgagee is still even trying given the problems with first-second lien positions.
Short sales or DILs are a night mare when there is a second lien; pretty near impossible. Your Realtors suggestion of $1,750 to settle a $26,000 debt was almost laughable. By the way was (s)he throwing part of the sales commission into the pot? My guess is
Look at the situation from the lenders™ point of view. A lot of the legal fees have already been incurred and now theyre on the downward slope to completing the foreclosure. Surprised the first mortgagee is still even trying given the problems with first-second lien positions.
Thank you all for the information (whether it good or bad). I really appreciate everyone's honesty. I will look into the loan but at the rate all is going I'm sure I'm gonna get stuck holding some sort of bag.
Time will only tell, eh??
I do have one last question in regards to the foreclosure, how long do you have or at what type of interest is it usually when either the mortgage co and/or the HELOC company come afte rme for the the balance or defiency judgemtnt of these loans? Are these something I'll be stuck paying for years and years to come??? I can't file bankruptcy, was forced to do that last yr. AND had I known all this would've happen w/ my home I would've put it in the bankruptcy then and saved myself all this headache!
Time will only tell, eh??
I do have one last question in regards to the foreclosure, how long do you have or at what type of interest is it usually when either the mortgage co and/or the HELOC company come afte rme for the the balance or defiency judgemtnt of these loans? Are these something I'll be stuck paying for years and years to come??? I can't file bankruptcy, was forced to do that last yr. AND had I known all this would've happen w/ my home I would've put it in the bankruptcy then and saved myself all this headache!
Hi aimzube,
Welcome back to our forums.
I haven't heard of a rate of interest at which you'll pay the deficiency. The deficiency amount is what you pay as lump sum cash in most cases. However, at times, on request the lender may allow for a payment plan for a few months so that within the time period you'll be able to pay the deficiency. It's not what you have to pay for years and years to come.
The deficiency is the difference between what you owe and the sale price of your home. In which state are you in? And what have you finally decided upon? are you in talks with the lenders?
Regards,
Jessica.
Welcome back to our forums.
I haven't heard of a rate of interest at which you'll pay the deficiency. The deficiency amount is what you pay as lump sum cash in most cases. However, at times, on request the lender may allow for a payment plan for a few months so that within the time period you'll be able to pay the deficiency. It's not what you have to pay for years and years to come.
The deficiency is the difference between what you owe and the sale price of your home. In which state are you in? And what have you finally decided upon? are you in talks with the lenders?
Regards,
Jessica.
Well, that is what scares me... in this market I think the difference btwn the mortgage/HELOC and the sale price will be pretty considerable actually and there is NO way I can pay them in a lump sum or over a few months. I live in Michigan. I've spoken to both lenders several times and the mortgage co. seems ok but the HELOC bank are not willing to do much to help us out at this point. I'm guessing we'll end up in foreclosure since the mortgage co will not give more than $1750 to the HELOC co. at this point (not sure if that can be worked out btwn the two companies). Citimortgage tells me that I need to get the signoff from the HELOC bank and the HELOC bank said there is NO way they'd accept such a low amount (which I can understand).
Thanks again...
Thanks again...
Hi AIMZUBE,
Whether you go for a foreclosure or short sale, if home prices in your area are on a decline, you won't be able to pay enough to the lenders. So, I don't think it will help you much if it's a foreclosure.
However, creditwise the effects of a foreclosure would be far more than that of a short sale. Moreover, you'll have to pay deficiency in both cases, unless you are staying in an anti-deficiency state and yours is a purchase mortgage.
There's one way out that I can think of - a lease purchase option. I mean if your home isn't selling at a good price, why don't you rent it out to someone who'll be willing to buy it in near future. And you could even pay the mortgage using the rental payments. I'm not sure as to whether your lender and the Heloc provider would agree to this, but you'll have to speak to them about this in case you prefer it.
Hope this helps...
May god bless you.
Samantha
Whether you go for a foreclosure or short sale, if home prices in your area are on a decline, you won't be able to pay enough to the lenders. So, I don't think it will help you much if it's a foreclosure.
However, creditwise the effects of a foreclosure would be far more than that of a short sale. Moreover, you'll have to pay deficiency in both cases, unless you are staying in an anti-deficiency state and yours is a purchase mortgage.
There's one way out that I can think of - a lease purchase option. I mean if your home isn't selling at a good price, why don't you rent it out to someone who'll be willing to buy it in near future. And you could even pay the mortgage using the rental payments. I'm not sure as to whether your lender and the Heloc provider would agree to this, but you'll have to speak to them about this in case you prefer it.
Hope this helps...
May god bless you.
Samantha
Yes, I guess we could try that option.... I'll have to talk with them about it.
Thank you all for your help. I'll keep you posted and will probably have more questions as well. This is a great site!!
Thank you all for your help. I'll keep you posted and will probably have more questions as well. This is a great site!!
Yes aimzube, it's a community where people help each other to resolve each other's problems thereby bringing in relief and happiness. :)
I'm not super familair with your situation but it seems like you're in a hard spot. I recently used a program that helped me pay off my house and all the heloc while I was upside down. It changed my life. I don't know were I would be without it.
Hi azubechick I realize this information can seem a little late. But if you have been served foreclosure documents there is help available. Once you are 30 to 45 days past due you will need 3rd party representation.