Foreclosure in Portland>Question Details

Wandajane, Home Seller in Portland, OR

I have a first, a 2nd & a hard money 3rd. The 3rd is foreclosing. What happens to the 1st & 2nd. Do I have anyoptions?

Asked by Wandajane, Portland, OR Sun Oct 10, 2010

the 1st and 2nd are considering loan modifications

Help the community by answering this question:

Answers

7
I know an owner in the same position now. The 3rd is private. The house is BPO valued at 300,000 which is VERY incorrect---I think its worth 225,000. and the three loans equal 303,000. The 3rd would be insane to foreclose and they are just waiting to see how it all works out. The 2nd started FC but the 1st had not. This was all after 12 months of no payments by the owner. The owner had been trying for a loan mood with the first and second, which was why the let him go so far out. The second lied and kept 'losing' the paperwork and many other nasty things, than filed and served him with a sale date. The 1st was of course notified and then also filed with a date one month later than the 2nds date. The 2nd didnt want to have to pay the first so they 'unofficially' decided to hold off and watch the 1sts sale. Owner tried to have them hold so he could sell it, which would have wiped the 3rd out. The 1st was 181,000 and the 2nd was 57,000 or 238,000 total. The 1st actually wanted to but the 2nd, thinking its worth 300,000, changed their mind about waiting for the 1st sale and re-started their sale, wanting to FC on the prop and sell it at a profit. The owner is filing chpt 13 to stop the process.

In your case MUCH more is needed to offer an opinon. Without knowing what Id need to know, the best thing to be said is you need an ATTORNY! Get one asap.
0 votes Thank Flag Link Sat Oct 16, 2010
WJ: I would suggest contacting a real estate attorney. You could try Chuck Reynolds at (503) 222-3529. Good luck to you....
Janeese Jackson, Principal Broker
Real Estate Resource
503-709-0802
jj@janeesejackson.com
0 votes Thank Flag Link Mon Oct 11, 2010
Bob has some good points. If the 3rd lender is initiating the foreclosure, there is either enough equity for them to throw good money after bad, or it is a scare. Either way, since they initiated, you will need to find a way to satisfy them. Is the value of the property good enough it can still be sold and satisfy all 3?
I can tell you that many of the homes that go to the courthouse steps at auction never even tried to market and sell their homes. Tragic. Make sure to stay in front of the problem, talk to the lenders and of course this one may be for a good lawyer to look over. I have some suggestions if you like.

Airika Waible
Blu dot Realty
http://www.bludotrealty.com
http://www.oregonshortsaleexpert.com
503-793-4336
Web Reference: http://www.bludotrealty.com
0 votes Thank Flag Link Mon Oct 11, 2010
First of all a short sale will be virtually impossible with 3 lenders involved especailly a hard money lender.

The 3rd will need to pay off the 1st and 2nd so unless you have equity this may just be a ploy to get you to pay them first be careful.

Loan modifications on the 1st and 2cd will not stop the 3rd you better get the 3rd on board unless you can afford to pay them what you owe them plus be in a position to keep up with their payment when the other are modified.

Good Luck
Bob Patrick
Buy a home after foreclosure expert
0 votes Thank Flag Link Sun Oct 10, 2010
Yes you do have options. This can depend on several things, and we cannot give you legal advice. All I will say is that I've seen this situation work best when both a short sale negotiator and attorney were involved. You aren't necessarily doing a short sale but a negotiator will be able to assist in ways that really benefit everyone involved. Be proactive and contact an attorney to get some guidance as to how you should proceed.

Good luck
0 votes Thank Flag Link Sun Oct 10, 2010
John is right, a short sale may be your best option, but would need more info. Here's a couple good links too. Let me know if I can be of any help, we do short sales quite a bit!

http://www.youwalkaway.com/
http://walkawaytoday.org/

Tracey
503.317.5834
trahicks@msn.com
http://www.traceyhicks.com
0 votes Thank Flag Link Sun Oct 10, 2010
short sale possibly, talk to a local agent and see if it makes sense. Good luck!
0 votes Thank Flag Link Sun Oct 10, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer