Posts Tagged ‘california’

My California house went into foreclosure and sold at auction.

March 22nd, 2012 by Jarad

Question:  I live in California. My house went into foreclosure and sold at auction. I have a home equity line that I owe 54K on. The home equity line is current. If I continue to pay on it, what will happen? Will I be able to continue to make payments or will they come after me for the full amount?

I have an investment property in California that foreclosed. Can they garnish wages?

September 11th, 2009 by Jarad

Question: I have an investment property in California that foreclosed, now I have a differdent company NARS calling me regarding that line of credit that I owed the to Chase. They want me to pay the whole 53,000 in full or make payments on it. I currently live in NC. Can they lien my home in NC or garnish my wages?

Answer: -If they file a deficiency judgment against you, yes you’ll have to pay them and that judgment may be able to attach to other properties or yes they could garnish wages if they took it that far. Very rarely does this ever happen because it costs the banks even more money to sue for a deficiency judgment and clearly they should know you don’t have any money, so they don’t even bother. And if by some odd reason the bank did file for a deficiency judgment, most homeowner file for bankruptcy which wipes out the judgment altogether. More than likely they will 1099 you for the amount they lost and write the loan off.

It’s not uncommon either for lenders before foreclosure and after foreclosure to put fear into homeowners minds telling them they will sue them or garnish wages or take assets if they don’t pay. These are all scare tactics. It’s there job to “scare” you so you’ll pay them as much as you can, even though clearly you can’t afford any payments to them.

We currently have a loan for $244K and a second home equity line for $79K. Our condo is worth $150K. I can’t do a loan modification I tried.

September 10th, 2009 by Jarad

Question: We currently have a loan for $244K and a second home equity line for $79K. Our condo is worth $150K and we owe $320K, but we don’t know wether in California we are liable for that 2nd loan since it’s a home equity line? I don’t want to end up owing Bank of America $79K when I’m going to loose my property and ruin my credit. What should I do? I’m still current with payments but I’m struggling and I can’t do a loan modification I tried.

Answer: – I would keep trying to work with your bank on the loan modification. There are several attorney’s out there that “GUARANTEE” there work when modifying loans so you may want to check into that as well. It’s hard to believe sometimes, but they really do want you to stay, the challenge has always been jumping through all their hoops which an attorney can assist you with. Also you have a better chance since they know certain things to say that will increase your chances of a successful loan modification.

If a loan modification still doesn’t work, then you could try to do a short sale. Unfortunately with a short sale you would have to sell your home, but if you can’t make the mortgage, then you’re going to move anyway so might as well be a short sale then foreclosure on your credit. Regardless if you do a short sale or foreclosure, the bank still has the right to come after you for the deficient amount, but very rarely does this ever happen in California because of the laws there. And if you have an seasoned agent or investor working with you on the short sale, they can actually eliminate the possibility of a deficiency judgment altogether. So really all you have to be concerned with is a 1099 from the bank. They will write off the loan as a loss and 1099 you for the amount they lost. Whatever you do, don’t ever give up.

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