I have a home in San Diego, Ca. Can't refinance and can't sell. Owes more than home value and high 55 credit ratio and no cash to put down. I have 1st loan (with lender A) and 2nd loan from (lender B)on this home. What is going to happen to both my loans after I foreclose on my home? Will they still come after me?
2006-09-22 10:16:34 · 10 answers · asked by Darn 2 in Business & Finance ➔ Renting & Real Estate
In Missouri Lender A or the 1st mtg holder after forclosure can come after you to make up the difference what you owe. Lender B the 2nd mtg holder is just out of luck...
2006-09-22 10:22:38 · answer #1 · answered by Scott 6 · 0⤊ 0⤋
You question is a little confusing. You as the mortgagor don't foreclose on a property. One of the lenders has to foreclose. Lenders will sometimes take back the property in lieu of deed but that is generally in extreme cases. Given the depreciation in the homes value you may be able to get both lenders to discount the principal in order for you to refinance.
As far as your credit, if you are more than 2 payments behind I would imagine all of your credit card companies hit you with the universal default and you are probably paying 30% or more on your cards. Very difficult to reverse.
If you can't get the banks to discount your mortgage and have no hope to refinance or sell then I suggest you file a bankruptcy to at least give you time to do either. Your credit is shot already. You don't have to necessarily complete the bankruptcy. It can be dismissed at anytime. If they didn't before the bankruptcy, the banks might be willing to discount. If so go ahead with the refinance or sale.
In a foreclosure, either lender can come back and file for a deficiency judgement if the property doesn't bring enough to pay them off. The only thing the foreclosure sale will do is eliminate the lien on the properties to the new buyer. You are still liable to the lenders for the full amounts.
2006-09-22 12:07:36 · answer #2 · answered by Sam B 4 · 0⤊ 0⤋
Why did you get a loan for more than your house is worth? Is that something you did on purpose or did you have a scummy loan officer and appraiser that over appraised your home to make your loan work?
Even if that is the case you should be responsible enough to know when you are getting in over your head. If the bank forecloses on your property lender A will sell your house and any money they make will go to them to pay off the loan you have with them. If there is any money left over after they have covered the loan they gave you lender B will get the remaining amount to pay off the loan you owe them. If there is nothing left they will go after you to try and collect - sounds like a bankruptcy is in the future for you. Once you get your credit back and buy another house don't dig yourself so deep again. I don't mean to be so harsh I know it must be a stressful situations, but I see it all the time (I am in the real estate business) and I am tired of people making all of these horrible real estate decisions without putting any thought into future.
2006-09-22 11:50:27 · answer #3 · answered by greenshirt 2 · 0⤊ 0⤋
You can try to get Lender "B" to take a Short payoff... I see those all the time as a Escrow Officer in San Diego. Thats just where the market is heading. IF lender "B" agrees to a short payoff then you can sell your home, paying off Lender "A" and lender "B" will get something avoiding forecloser. Most 2nd will go with option because it is beter than getting wiped out in a forecloser...
Talk to your Agent they should have many different options for you. If you do not have an agent then get one.
2006-09-22 12:12:03 · answer #4 · answered by *Me* 2 · 0⤊ 0⤋
Lender B will see if it is worth paying off lender A to protect their interest in the loan they gave you. If they think it's worth it, they will do the foreclosing. Chances are, lender A will be paid off no matter what and won't come after you. You need to worry about lender B getting a deficiency judgement against you.
I help people in foreclosure. You're better off selling it via a "short sale" than to let it foreclose. Please contact me to see how I can help you out.
Regards
2006-09-22 17:50:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Your credit will be in the toilet & you wont be able to get a home loan for years. And yes, you are personally responsible for the loans. Get a Home Equity line if you can & pay off the 2nd.
Selll the house & pay the lender the difference. Why can't you refi? If your credit is good then it should not be a problem.
2006-09-22 11:06:50 · answer #6 · answered by ready2go67 5 · 0⤊ 0⤋
You did no longer point out what the home is well worth now. bear in strategies in case you default the lender will foreclose no longer you. If the homestead would not convey a severe adequate value to conceal the banks investment and expenses you would be responsible for the stability. greater your credit would be interior the lavatory. pay attention of provides from parasites finding for human beings on your place. in case you're reason on giving up your place touch the lender and sign the suitable records sparing the lender greater criminal expenses. I forgot the call of that variety of forclosure. As I mentioned, you need to be the single to blame for the criminal expenses. in case you are the different way up the lender would not want this assets back. See in case you are able to negotiate for decrease activity or different concessions on your want. changing financial situations have made fools of a few dazzling and not trouble-free working human beings. Be brave, you will get via this.
2016-10-15 07:38:21 · answer #7 · answered by benavidez 4 · 0⤊ 0⤋
Most likely not. Contact a local real estate attorney for advice.
2006-09-22 10:57:42 · answer #8 · answered by ? 3 · 0⤊ 0⤋
Please look up Primerica nearest you and make doubly sure they can't do anything for you before you make this major decision. If they can you will have no worries. It's free.
2006-09-22 10:19:25 · answer #9 · answered by pc93 2 · 0⤊ 0⤋
if you declare bancrupty they can't, they can not put you out of your home either, and either way your credit will be ruined
2006-09-22 10:28:03 · answer #10 · answered by acid tongue 7 · 0⤊ 0⤋