Foreclosure in 91702>Question Details

Cath, Home Owner in Covina, CA

My home loan is "upside down" (in CA).Am just sending in docs for Fannie Mae loan modification program. I'm selling a 4-plex in MT.

Asked by Cath, Covina, CA Sat May 21, 2011

Will they cancel? Home loan was a refinance with Countrywide (now Bank of America). Is it possible to let foreclosure happen, or now that it is under B of A will I still owe balance because I own more property in MT?

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Bill Mota’s answer
If you have equity in 4-plex in MT, BofA may consider that as part of you financial status. However, if you home in Azusa is really upside down, they will usually approve the short sale - but possibly ask for some contribution from you to help share the loss. Usually, if we have time, we can re-negotiate the short sale until the bank removes their requirement for contribution from the seller.

I am HAFA & Equator approved (BofA's short sale system), so feel free to contact me if you have any other questions. Bill Mota 626) 233-0190
1 vote Thank Flag Link Sun May 22, 2011
Banks like Bofa are just trying to give the perception to homeowners that they really care & want to help with a loan modification, but the fact is they don't care & they're seldom doing loan modifications that truly make sense & help homeowners in the long term. Your best bet is to get out from under your "upside down" home, rebuild your credit & in 2yrs buy again & build your equity back up from the bottom.

BofA is not going to reduce your principal balance, which is why doing a short sale is your only way out. BofA will not go after your 4plex in MT. We have been successful in also getting BofA to release you have any future liability on the upside down mortgage.

Please email me directly & I can help you to analyze just how upside down you really are & show you how you'll come out very much ahead in the end.

** If the banks WERE really helping the majority of underwater homeowners, there wouldn't still be thousands of people doing short sales or the REO inventory would be slim to none.
562-430-3053 cell
Realtor Since 1996
Short Sale Expert
1 vote Thank Flag Link Sun May 22, 2011
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at You can check us out at I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Thu Aug 15, 2013

It sounds like you are trying to do a loan mod in California and sell a 4-plex in Montana. I am not sure why you think the refi with Countrywide (now B of A) will impact this scenario.

Here is what I know from experience. Of course, if you are looking for legal advice, then you need to ask an attorney.

Loan Mod - If you have a financial hardship and your loan qualifies for a loan modification, then you have a chance to complete one. Just make sure that submit all the paperwork (even if they ask for it multiple times) and have patience. How will the sale of the 4-plex affect this? Well, if you have equity in that property and it will cure your financial hardship, then you might not be able to get a loan modification.

Foreclosure - If you have only one loan on your home in California and the lender forecloses on that loan through a non-judicial foreclosure (which is the standard way that 99.9% of lender forecloses happen in this state), then that is the end of their right to collect on that debt. California is what is known as a one-action state, and the foreclosure would be their one action. If you have two, or more, loans on the home and the 1st forecloses, then you should be concerned about the 2nd (and 3rd if you have one) coming after you for the amount owed to them.

What to do if you have more than one loan on your home in California - In the case of multiple loans, you would want to consider a short sale. Make sure you use an experienced short sale agent who has actually closed short sales and knows how to negotiate with the lenders. They will work to negotiate with the junior liens to not only remove the lien, but also accept the payment they receive as payment in full on the debt.

No matter what you decide, it is always a good idea to get advice from an attorney, an tax specialist, and perhaps even your financial planner, in addition to interviewing a couple of Short Sale focused Realtors. That way you can make an informed decision. Dare to Dream.

Shel-lee Davis, QSC®
Certified Distressed Property Expert – CDPE®
Short Sale & Foreclosure Resource – SFR®
Certified HAFA Specialist – CHS®
SSG Pro®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
424-2HELP12 (424-243-5712)
0 votes Thank Flag Link Sat May 21, 2011
Not quite understanding the question but if there is equity in your 4plex in MT it's just a possibiliy that it may disqualify you from getting a loan modification on your home here in CA. But you'll never know unless you try.
0 votes Thank Flag Link Sat May 21, 2011
I will suggest you to speak to an attorney regarding your situation.
0 votes Thank Flag Link Sat May 21, 2011
Please give me a call, if you need to do a short sale.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Sat May 21, 2011
Hello Cath,

You can do a short sale if the loan modification fails. I have closed short sales with B of A-many. It all depends on what can be worked out with the lender. Your better off doing a short sale and not letting it foreclose as it's less damaging to your credit.

I am happy to asist you with the process and can negotiate the best option for you which is a short sale and not just letting it foreclosure.

Please contact me to discuss and go over the details of your situation.


Monique Carrabb
The Carrabba Goup
Keller Williams Hollywood Hills
(323) 899-2900
0 votes Thank Flag Link Sat May 21, 2011
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