I am in a bind. Im trying to sell my house. Can not due to the property value dropped drastically and now the value of the house is less than what is owed due to a exit off the highway being built 1 house from my house.
I am forced to do a short sale. My 1st lien is ok with it but the 2nd is being real stubborn about it and want me to pay the entire thing back.
I am willing to go into forclosue if I have to but I do not want to.
Is there any thing that protects the homeowner in this situation?
Thanks.
2007-11-19 08:13:28 · 6 answers · asked by da_god_ra 1 in Business & Finance ➔ Renting & Real Estate
There is no protection against this sort of situation. If foreclosure is your only option, then you may have to go for that, and let the second mortgage fight it out with the first. It's entirely possible that the second is aware of the potential future value increase due to the highway exit construction, and will buy out the first at foreclosure.
In either event, you borrowed the money, and you owe it to the lenders involved. It's not their fault that things have changed.
2007-11-19 09:27:52 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
There is no protection for homeowners in situations like this. Foreclosure is a very serious scenario and, you sound like you've done some homework, just be sure you fully understand the consequences of foreclosure.
Trying to work the Short with the second is always the most difficult. Does your 2nd know they are in second position? Sounds silly but they have argued with me stating they are in first until they received verification from the recorder's office.
If your 2nd is truly in 2nd, and you stop making payments and they foreclose, then realize they are in second and will have to pay off the 1st in full, they may be more willing to negotiate. But this is a slippery slope with long term implications.
Proceed cautiously.
2007-11-21 13:36:59 · answer #2 · answered by cnichol_t 2 · 0⤊ 0⤋
the question is, why should you have the protection? You owe the money. The protection should be for the le.nder
If you let it go into forclosure, you WILL still owe the balance PLUS court costs, etc.
Why not rent it out?
Was the exit ramp a surprise when you purchased the house?
This may make the property worth more, since you can rezone. In fact, in my area, I'm buying up all the houses at the major exits on the interstate.
2007-11-19 08:36:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The lease (and any legal actions pertaining thereto) are between the Landlord (e.g. Property Owner) and the Tenant. A potential short sale or foreclosure by a lender does not effect that legal agreement, therefore: (1) The tenant (and landlord) must continue to abide by the terms of lease agreement, including the payment of rent. (2) The rules of eviction are the same, as if there was no short sale/foreclosure pending.
2016-05-24 05:37:32 · answer #4 · answered by lara 3 · 0⤊ 0⤋
No there isn't. You should have a real estate agent, or a lawyer handle this for you. Bank are more responsive to the professionals in the field than the home owner who is defaulting. Do worry about paying the Realtor, the bank will include that in the short sale.
2007-11-19 09:15:15 · answer #5 · answered by frankie b 5 · 0⤊ 0⤋
nothing in particular in this situation if the second note refuses to release, they may find in the end it is better to let the place go into foreclosure then buy it to protect the second interest in the note
even if the first note forecloses this will not release your liability to the second note, it will not just go away, except for bankruptcy
2007-11-19 08:18:52 · answer #6 · answered by goz1111 7 · 0⤊ 0⤋