Question: I have 2 homes in Florida. My primary residence has a very high payment because our other house never sold. I am having a hard time making the payments. My job of almost 20 yrs was outsourced over seas. I am working a temp job until February. If I have to let the house go, can Countrywide come after my life savings. Will they put a judgement on me?
Answer: -More than likely the loan was created with the home being sufficient collateral, so in the event you couldn’t pay, the loan company would take the house. So they can’t come after your life savings. However, they can come after you with a deficiency judgment which is the difference between what you borrowed and what you sold it for. If filed, then yes you would have to pay them what the difference is. This is more common in mortgage states. You can see what what your states primary security instrument is and research the laws for your state.
We applied for a workout from Countywide, which later became BofA, and are still waiting for documents after 5 months. The website says we are approved for a loan modification after we provided all the documents they asked for, and met with a financial counselor. The note on our loan that shows on the web says that a counselor will call, but none has, and its been nearly 5 months-and we have called them many times to no avail. Meanwhile, the costs of the loan continue to accrue on our loan, and we did send an escrow payment, and they returned it. We spoke to an attorney that said many of the servicers are merely backed up, and the fact that the services notes on our account that we have been approved is all that we should worry about. But we are afraid they will ask for the entire amount in arrears when they finally do call, which may be out of reach financially for us by then, especially since we are paying for medical costs and living expenses accrued after a catostrophic illness (heart transplant) where one of us was not working for a couple of years, but we are both now am back at work, and able to pay. Should we call our attorney and ask that he try to force them to provide documents now, or continue to be patient? Will they come after us for an amount we can’t pay up front, and then just take our home?