I have several all cash investors who can help you with a private money refinance of the second deed, without having to go through the traditional bank loan process......
they can respond quickly in a couple days......give me a call or email.....
Realtor and Private Money Specialist
That is a very interesting question and one that I'm not truly qualified to answer. You most certainly need to consult with a real estate attorney as soon as possible.
My opinion would be that your first choice was to refinance your mortgages into a single mortgage earlier on but I bet you could not do that because of your equity position. Without knowing the balance of your mortgages and the estimated value of the property I cannot assess how deep your second trust deed holder is in on this deal. Do they stand to lose a majority of their investment or only a fraction? I would assume that they would stand to lose only a portion of their investment if the first were to foreclose before they do so they are attempting to recapture as much of their investment as possible now and not take on more risk.
However, of course you understand that the second will become responsible for the first if they do foreclose now. And in California if they foreclose by way of a trustee sale then you should be off the hook for any deficiency judgment. They can't take back your property and go after you for a deficiency - one option rule. Because this is a non-owner occupied property, the rules of the game change a bit so I'm going to say it again. I'm not the qualified expert here and my opinion should be taken as such. Anyone who reads this and knows better, please feel free to correct me.
In terms of fighting your foreclosure goes, have you looked into filing bankruptcy? A chapter 13 filing may be able to strip off your second or restructure your debt so that you can continue with your ownership interest while making monthly payments to the bankruptcy trustee in exchange for keeping your property. You won't be able to strip off your second trust deed unless it is declared to be without any equitable value. Meaning, the value of your units cannot pay off any portion of your second trust deed if it were sold today. So it depends on your equity position and how upside down you are.
Is it worth fighting for? Are you so upside down that it will take a decade to regain the value necessary to become whole again? We do need to remind ourselves of what we are fighting for and if winning the battle will also win the war (so to speak).
Good luck and I hope you find the answers you need.
Diane Wheatley, Broker
Talk to your lender(s). They do not want to take back the property unless all options are exhausted. Also, the first does not want to loose their stake to a 2nd... If the 2nd is foreclosing, where are you at with the 1st... are you also behind with them?
Things can be stressful and you may get tired of calls and mailings from them, but you need to communicate with them. They will be the first to tell you what your options are. If you are not going to qualify for a loan mod, they will tell you. If you cannot bring any $ to the table to cure the delinquecy, then you need to think hard about your future ownership of this property. How soon is the sale date?
Is there any upside to your rents... vacancies, or are you fully leased out? If you are completely maxed and even with a lower interest rate and modified loan terms will you still be bringing in money per month... if so, this property is an alligator that will slowly bleed you.
Be honest with your financial situation and it will help you decide what is best for your mental now and financial future. If you do not have any options with your lenders, then you should consult with your attorney and accountant.
Also, you should consider selling the property right now while you are figuring this out. Do you have equity? If so, price the property at a competitive rate and you may find your savior. If you do not have equity, you may want to consider a "short sale" Again, speak to your attorney and accountant, but I would be happy to assist you with selling this. Give me a call... I would be happy to go over a marketing strategy for either a normal sale or a short sale. I happen to perform many shortsales and can answer whatever questions you may have regarding this type of sale. Thank you. Always happy to assist.....
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
Assuming you're referring to California trust deeds, when there are two trust deeds on a property, and the first goes into default, it is up to the holder of the second trust deed to file that first step towards foreclosure even if the payments are current on the second trust deed.
The first TD holder is not concerned with what condition the second TD is. The holder of the second trust deed, in order to protect his interest in the property must immediately file the notice of default, even if the payments are current with the second. That means the second TD holder must have a way of keeping abreast of the payments on the first TD.
He must do that to protect his position, because if he doesn't the holder of the first could wipe the second trust deed out by foreclosing on the first. However, if the second files the foreclosure action on the second TD first, the second TD holder will be protected and will foreclose on the second to protect his losing the property to the first TD holder.
That's why the second TD holder files a Notice of Default Request with the first TD holder.
There is always way of making the second TD holder comfortable:
1. If you are still paying on the first, even partial or modified payments, send him a copy of the first TD coupon you already paid. If you have a modification with the first, send him any documentation to that effect.
2. Work out a payment schedule with the second TD.
3. Attempt a refinance or modification. You may be able to get the second TD holder to extend the term and reduce the payments on the second, so long as you are current on the first.
By all means consult with a real estate foreclosure attorney, as time is of the essence.
Best of luck for a speedy resolution;
ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
Can you refi it ???
Call the first and see if you can work something out with them.
You can try to sell the property to beat the foreclosure.
You can find some investor and give up some equity in return.
You can ask a real estate attorney and ask for the advice which is what you should do.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate License # 01312992