Question: We are moving and our home will have to be a short sale. We have perfect credit and have never been late on a payment. The short sale will need to be on the second mortgage only. We owe $150,000 on the second and the short sale will probably be $75,000 of that. We are purchasing a lot where we are moving to and I want to make sure they will not be able to put a lien on it for the difference. In other words what assets will they come after for the difference.
Answer: – Well, technically they can come after you for whatever is not satisfied. If the short sale is approved and successful, the individual doing the short sale will need to make sure it “satisfies” the loan in which you will receive a 1099-c. If they don’t satisfy the loan, then the bank retains the right to come after you for the deficient amount.
There is actually another option, similar to a short sale, but takes half the time, allows you to stay in the home or (be able to actually sell it in this case) for a profit. We basically get rid of the $150,000 second mortgage by offering a settlement with the lender. The loan is completely satisfied and it never shows up on your credit like a short sale does. Just another option out there for you to think about.
I purchased a crack house in Nevada during the boom for 200k$
Got my first home on an 80/20, both loans sold a few times, the 80% (160k$) is an arm the 20% (40k) is fixed @9%
I do not want to stay in the house, I do not plan to buy another house as I did not enjoy the “fixing” of everything that was broken, I plan to just rent for the next 5+ years
Put new windows + roof + kitchen + lots of other work into the crack house so it is now an OK house made in the 1940’s…..
3 months late on payments now, wife lost job and first baby on the way, payments are 1800$/month
Have been trying to short sale @ 199 to 175 to 159 have had about 10 showings
Received intent of foreclosure
I called around and only person that would talk to me said to give the 2nd mortgage people the deed, they would sell it and pay the 1st mortgage and I would most likely not be pursued
Other alternative was to be foreclosed on, the 1st mortgage would sell house and not pay 2nd mortgage people, 2nd mortgage people would come after me for 40k$
What should I do to extend the foreclosure?
Short sale my best option?
Giving deed to 2nd mortgage sounds odd to me, would this work? should I pursue this immediately?
Is there anything else I can do? My credit is already destroyed and I do not plan to get a car loan or house loan, I just want to get out and not owe anyone any money.
I have a tiny 401k and no liquid assets over 5k$
I sold one of my cars and have some cash and could pay almost 2 months…. should I in hopes of extended foreclosure? or would that be throwing the money away>
I need this cash to get into a rental (1st month + last month + deposit)
There are a few different options you have but you must at least begin to gather all your current loan documents, notice of default and create an income/expense statement so you can try to negotiate with your lender as to your intent of the property. Note the lender may or may not work with you.
Note: Also if you have equity in your property beware the lender may ask for you to sign a deed in lieu which means you are giving up your title/deed to the property back to the bank…. BEWARE