| Article Index |
|---|
| Real estate blogs online |
| Page 2 |
| All Pages |
How can I stall the Foreclosure on my house?
A: I know of only two methods: pay the loan in full OR file bankruptcy. The first permanently forestalls the foreclosure; the second temporarily.
Ken’s comments: Be aware of all costs involved once a Foreclosure Process goes through its full-time limit. Know your tax consequences before stalling or purposely avoiding payments.
Second mortgage charged off after filling for bankruptcy
I have a second loan on my house that has been charged off. My main loan is current. I understand that this second loan really has nothing to do with the fact that I declared bankruptcy just before my divorce. My ex was supposed to pay the second mortgage and he never did and now the second loan has been charged off. There is no going after him for that money and I now want to take care of this loan myself, as I solely own the house.
Chase is talking to me and wants my financial info so they can determine how much I can afford to pay. They are "kind of" threatening foreclosure. I have a couple of options financially, I can offer them perhaps $4,000 (out of my 401K) cash, which would be 20 percent of the loan. Or I could arrange periodic payments for perhaps a negotiated amount, but prefer not to.
A: Your post is confusing. A mortgage is secured so can't be "charged off" like a credit card balance from an unsecured creditor.
Ken’s Comments: I was told that once a Bankruptcy has been filed, the second loan becomes an unsecured debt. That is why if the second lender won’t be collecting this debt, it does not mean it has been charged off, and it specially does not mean that it comes off the deed or title. You will have this second lien still on your property, and yes, the lender can threaten to foreclose.
Release of liability and/or quit claim deed
My husband and his brother currently own a house together. We were married just recently, and he moved out prior to that with the understanding that his brother would either keep the home and refinance in his name only, or they would sell the house.
His brother has decided to keep the house. Instead of refinancing, the bank that holds the mortgage has told them that they could do a "release of liability," and my husband would then do a quit claim. They say this will remove my husband's name from the mortgage. Of course, our concern is that if his name is not removed from the mortgage, we are therefore liable for the payments, should something happen to his brother's employment situation. The fear of being liable for two mortgages is keeping us from buying a home of our own.
We just wanted to clarify that this release of liablity and subsequent quit claim would indeed remove my husband's name from the mortgage note. Is there anything we should be aware of moving forward with this process? Any help is greatly appreciated!
A: Have the lender forward a copy of the release, and have an attorney review it. If it does the "job" and releases him, it is OK to proceed to have the release done in exchange for the QC deed (simultaneous delivery). Pay to have the documents released through an escrow or title company so that it's all done together.
Ken’s Comments: Make sure you also are sure that the debt no longer appears on your husband’s credit. In most States, lender will require for a refinancing process to take a name out, but it’s always worth a call to ask and inquire.
Pre-foreclosure
Two months behind (would have been three on 11/2), we received a notice of intent to foreclose when we were 30 days late, saying if we don't pay by 11/3, "the process could accelerate the sums secured by the Security instrument, making the entire loan immediately due and payable" partial payment is not acceptable, we have called Wachovia a few time recently to see if we could make a payment, and then make another in 15 days, bringing us to being 1 behind, but each time they said they needed a manager to approve it, but they were all in meetings. Do they really want the money or not? We owe 395k, the house might get 200k after a long wait on the market or less at auction. Also we filed BK on 11/2006 and the loan was listed in the BK. We tried to reaffirm at the time but they said, "We don't do that." Also got the same reply when inquiring about any other help from them.
Anyway, my question is, should I make a payment without a manager to approve it?
I want to try to survive this, but also if they are going to kick us out anyway I could save the money to move.
A: Your answer is too confusing.
Ken’s Comments: Let me see if I got this right? You want to make partial payments and would like to know if you should continue to pay, or just let it go into foreclosure. Your Bankruptcy filed in 2006 bears no effect on this transaction towards your mortgage debt now. You should ask yourself if you could afford the payments once you are caught up. If you are to fall back into this situation in a few months, why bother? Are you paying these arrears off with borrowed money, credit advances or your own funds? If you answer is the first two options, obviously you have to review your finances. I would really consider to lower your rate first if that will help. If not, if your obligation is too much for your income to cover, then do a short sale on your property. That will ease the credit pain compared to a full foreclosure.
| < Prev | Next > |
|---|
