Posts Tagged ‘foreclose’

Should I Foreclose or Short Sale

August 2nd, 2013 by Jarad

Should I Foreclose or Short Sale My Home?

Should I foreclose or short saleQuestion:  Should I foreclose or short sale. Here is the situation. I bought a condo in Tampa, Florida in September 2005. This was my first real estate purchase and my primary residence until I transferred to Maryland for my job in July 2008. I have a first mortgage for $150k and a HELOC for $25k. The property has been short sale approved and there is a buyer that is going to purchase it for the price of $60k. We are ready to close but I need to pay all the delinquent HOA fees, late fees and attorney fees that have mounted up. I can not afford to pay the $3000 in late HOA fees to close on the short sale. Now, I am facing foreclosure. I have asked the HOA to waive the late fees and attorney fees so I can do a short sale but they are refusing.

Is it worth it to borrow the money from friends and family or should I foreclose or short sale?
Thank you,

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Home Equity Line of Credit Payoff

March 30th, 2012 by Jarad

Question:  I had the loan with my heloc opened on March 23, 2006 but, when I refinanced the house on September 7, 2006 the lender paid off my balance on my heloc to assume the 1st and 2nd position. My heloc is telling me that they are in 1st position and my Primary Wells Fargo claims they are not. E-trade, which is my heloc, first told me that if I gave them $2,047.00 they will postpone the auction and do payment arrangements since they know I have a hardship and I just received a forbearance from my Primary lender Wells Fargo. So when I called to make the payment on Monday the guy then said, oh you have to pay us $25,000 or the $190,000 balance. I said you quoted me $2,047.00. He said, well you have to pay the interest fee’s, late fee’s and the months the account went unpaid. I told him I don’t have that. Then he said, well we will foreclose on your house despite your forbearance because we are the Primary so the negotiation didn’t work with them at all. Now Thursday this week they are trying to sale it, so I don’t know what to do but just stick with my Primary and hope they figure this out, but it’s scary since they just took my first payment for my forbearance and they act like I shouldn’t worry, but I am. Plus my house is only worth $440,000 and my Loans on the 1st mortgage is $592,000, the 2nd is $146,000 and the home equity line is $190,000 so there’s no equity at all and if I do the Chapter 13, my Primary won’t modify me and I wont be able to get the low mortgage payment they put me on with the forbearance so it’s a risky situation. Oh well, I will see what happens. Is there anything else I can do?

Answer:  – Wow, you’ve got a lot of stuff going on… From what it sounds like here, you’ve got a first and second mortgage with Wells Fargo and a 3rd or HELOC with E-trade. Wells Fargo agreed to do a forbearance where they lowered your monthly payment. Your HELOC though is threatening to foreclose because you haven’t worked out anything with them and they are claiming they are in 1st position so they would like to foreclose so they get paid. If I was to bet, I would bet that Wells Fargo is indeed in first position still. Banks don’t just “give up” their positions, especially in this market. Lien priority is based on when things get recorded, except for federal and municipal liens, like IRS and tax liens.

If you want to know, just have your local title company pull a title report and it will tell you. The bank that you have your HELOC sounds like they are trying to settle with you which is usually what banks do in 2nd or in this case 3rd position. They know they are going to lose everything so they might as well get something. It looks like they are offering you a $25K payoff for your $190K debt. That’s not a bad home equity line of credit payoff, although because there is no equity even in the first, I would negotiate that down even more. You need to determine first of all if this house is worth saving based on your personal circumstances. If you settle with the 3rd, but end up losing the home anyway, in my opinion, it would have been better for you to start over in the first place.

We settle notes and we’ve helped a lot of homeowners like you, settle these 2nd and 3rd mortgages for literally pennies… however, even if we were to settle these notes, you’re still upside down on your first mortgage, which doesn’t give you a lot of options. Usually when we settle notes for people it gives them equity again so they can either sell their home if they get in a bind or because we’ve lowered the payments, they can stay in their home. If you do decide to settle with the 3rd or get a home equity line of credit payoff, make sure you get a satisfaction and not a release of lien because that could make your life even more hectic. Let us know if there is anything we can do to help.

Can 2nd mortgage foreclose on me?

February 22nd, 2012 by Jarad

Question:  I have a 1st and 2nd mortgage with one bank in Florida. Then another bank came and offered to pay my 2nd mortgage with that bank. My heloc was not closed with the first bank and i had an emergency got some money out of it. My 5 yr term with the 2nd bank expired. They have been calling me and offering 8% interest rate on my heloc. I have been negotiating for a lower interest. they wont approved. Bank is threatening to foreclose my property. Can they do it? Property value is way too low..there is no equity on the house in this current market. Please advise. Can the 2nd bank foreclose my property?

Answer:   Absolutely, the 2nd mortgage can foreclose on your property. When you signed on the dotted lines for the HELOC, you gave them the right to force the sale of the property, which was collateral for the loan, in the event you did not keep up your end of the deal. Unfortunately, banks don’t like to negotiate with homeowners very much. They have this assumption that homeowners have no clue what they are doing. So they don’t give you very good deals that seem very reasonable based on current market conditions. Yet when a 3rd party (attorney or real estate investor) negotiates with them, the bank will usually lose more money because the offer is even lower then what the homeowner proposed. Bottom line, banks flat out don’t make sense.

So you best bet is to have someone else, like an attorney, negotiate the terms with them and try to get them to reason with you. Unfortunately, they cost money, but they should be able to help.

Another option is to have someone settle that 2nd mortgage and wipe it out completely…

Let the bank know you are interested in settling, tell them your home is upside down by $50,000 or whatever the amount is, there is a first mortgage in front of them and they will end up paying more than what the property is worth. Let them know your attorney has advised you to file bankruptcy but you don’t want to go that route. (This will just by you some time, they will eventually foreclose.) Then you or preferable someone else, needs to go settle that note for pennies and that way you don’t lose your home.

We settle 2nd mortgages and have been very successful in doing so for homeowners with large 2nds. The great part is that it doesn’t cost you anything upfront.

Good luck, hope everything works out for you.

I have a home equity line of credit and am delinquent.

December 8th, 2010 by Jarad

Question:  I have a home equity line of credit and am delinquent 1200. The credit union has a copy of the mobile home title, but is not listed as security interest holder. I have made arrangements to catch up the past due balance. We have not signed any mortgage papers. Can they foreclose based on a copy of the title. They want us to add them as security interest holders and said that also included our tax lots.

Answer:  – Anyone can foreclose if they have a lien on your property. If you borrowed money from a HELOC that is attached to another property to buy this mobile home, then the credit union will foreclose on the property attached to the lien that was pledged as collateral for the loan.

I own a home in Florida. We owned the home outright and then got an equity line of credit.

September 9th, 2009 by Jarad

Question: I own a home in Florida. We owned the home outright and then got a home equity line of credit. We have not made a payment in 2 years!! I heard they can not evict. Is this true? I call and email them all the time and they never respond.

Answer: -You haven’t made a payment in two years and you own the home outright beside a small line of credit…You are crazy for not making that payment unless the home is not worth what you owe on the home equity line of credit. No they can’t evict you…yet! Once they foreclose on the property they can evict you. I would try to get something worked out quickly especially if you have a great deal of equity in your home.

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