Foreclosure in 60901>Question Details

Stanley, Home Seller in 60901

I owned a house that I vacated 2 years ago becuse of transfer of employment. I owed 230K on my 1st Mortgage

Asked by Stanley, 60901 Thu Aug 13, 2009

I owned a house that I vacated 2 years ago becuse of transfer of employment. I owed 230K on my 1st Mortgageand 63K on my second mortgage. My 1st mortgage lender agreed to a short sale for the 175K offer and offer the 3K to my 2nd mortgage lender but my second mortgage lender won't release the lien if I don't sign a promisory note to pay the 60K balance on 27 years at high interest rate (9%). Shall I just let the 1st lender foreclose the house and wipe out the balance or am I still liable to pay for the 2nd mortgage balance. Please help, I am confused

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Stanley,

You have a few options. First, you could offer the second lein holder more money in order to get them to waive the promisory note. However, you'll then have to convince the first lein holder to accept less money as a result. Which if the feel it's in their best financial interest to do so they probably will. You could also file bankruptcy, but I would consult a BK attorney before considering that. In most of my short sales I hold the BK over the 2nd lein holders head and tell them that if they don't release, my client will either let the foreclosure go through and they will get nothing, or they will file BK and they will get nothing. If you get a clear picture to them that is convincing enough, they will usually be happy to take their $3K and go away. Please feel free to call me if you would like to discuss.

Tim Ireland
RE/MAX All Properties
(815) 215-4018
tim@timireland.com
Web Reference: http://www.TimIreland.com
0 votes Thank Flag Link Thu Aug 13, 2009
So this home is still vacant? Why not rent it out? What do you think it is worth right now?

Have you called to see if you could modify the loan? Then rent it out?
0 votes Thank Flag Link Thu Aug 13, 2009
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