Foreclosure coming on fast

Asked by hogwmfwa, 30044 Mon Dec 10, 2012

Had a short sale all set with the first lender (Well Fargo) but when it got to the second lender (USAA) they wanted $15K at closing which we didn't have. The house is currently vacant (although the insurance is up to date) as we have left the state and first mortgage has not been paid since August. The second mortgage is current. The falling through of the short sale came at the same time as the end of the marriage and she refuses to pay anything more. The short sale price would have covered the first mortgage but the second is still owed 33K. What are my options? Is there any benefit to continuing to pay the second mortgage? The insurance? Will I need to declare bankruptcy?

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Margaret Ke…, Agent, Woodstock, GA
Mon Dec 17, 2012
Annette Lawrence's response is very good. If you have not had a Realtor or real estate agent who has sucessful experience with short sales handling the process you need to find one. USAA like all other lenders moves slow and maybe slower than most. The fact is that if Wells Fargo forecloses, then USAA gets nothing. But you are still paying them and that's all they care about. Why should they even think of cooperating as long as they are being paid.
It is likely that they would accept you paying them out over a multiple year period on an agreed upon amount in an accepted short sale. And if your ex-wife is on the loan, she should be responsible for some of it as well. Atlanta has a very low inventory of properties for sale and there has been at least 60% of them as distressed property listings over the most recent years. You need someone who has handled short sales and been attentive to the seller and the process. The lenders still seem to be clueless about real estate transactions and they are only interested in their bottom line. You are more than a number.
Margaret Kees
Better Homes and Gardens Real Estate Metro Brokers
0 votes
MVC, Home Buyer, Vermont
Tue Dec 11, 2012
You can do short sales til the cows come home but if the second mortgagor will not give you a discharge you can't move forward. If they do give you a discharge there is usually stings attached, like wanting the seller to sign a new note....and that is even after they get the 15k. Save your money on the realtors and attorneys and do your homework. Call the banks and ask them what it will take to give you a discharge.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Tue Dec 11, 2012
Short sales! What a mess. It is not just your is ALL of them. As you are hearing from those who have responded, we truly understand the anguish with which you must travel and the anxiety that keeps the soul in turmoil. Ken advised, "Now is the time to seek the voices of wisdom....."
These are highly complex, completely unpredictable, lacking in logic and the most opaque of real estate transactions. At this point the progression of this train wreck is not known. It almost sounds like you have been negotiating this short sale yourself. (No mention of professional representation) You need to abandon this effort. It's time to hire some wisdom.
Seek out a short sale specialist in Atlanta. Someone who has closed a dozen or so this year. These folks know the ropes. I would not advise an attorney to be your first place to go. Their end-game, in reality, may not be what you expect and counter intended to the goal of your team.
The short sale specialist will review the current status and verify if you have approached your short sale with the proper preliminary steps. When determined, an immediate, intermediate and long term strategy will be developed with the appropriate exit strategies clearly;y articulated. When you understand, FULLY, these strategies, the short sale specialists will arrange a consultation with an attorney who has demonstrated the ability to execute within these objectives. When everyone is working as a team, instead of being jerked around by an attorney, the outcome are more palpable and less harsh. The attorney will then look more closely at your situation and suggest the likely consequences of each choice, option or dedision.
You must constantly remember, you are making choices based on the "least worst' outcome. It's never pleasant, or easy, but is a means to an end. You have no time to waste. Call an Atlanta short sale specialist NOW.
No, don't use that 'contact' button.
No, don't use Trulia email.
if you are serious, and you ARE in a serious situation,
go old school and pick up the phone. Ken provided you a few numbers.

Wishing the very best outcome for you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
0 votes
MVC, Home Buyer, Vermont
Tue Dec 11, 2012
First , list the house again and see if you can get another short sale. But, if the second mortgage wants 15k then you will have to come up with it or they will not give you a discharge. Without a discharge from the second mortgage you will not be able to close. Soon the first mortgage will foreclose and chances are the auction will not even bring in enough to pay off their mortgage. Consequently, the second mortgage will get nothing. If it goes to foreclosure it will all end up on your credit. The only option then is to file bankruptcy.
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Susan Jackson, Agent, Atlanta, GA
Tue Dec 11, 2012
I can imagine your situation must be tough for you right now. I hope the best for you. You need to contact a real estate attorney and especially one that handles short sales.
If you need a referral just let me know.
Take care
Susan Jackson
Americas Network Realty Group Inc
Direct: 678-296-4855
0 votes
David Herren, Agent, Atlanta, GA
Tue Dec 11, 2012
I cannot imagine the pain and stress you must be feeling now. You need to speak with a real estate attorney and someone who is an expert in negotiating short sales. Both can be found under one roof at a very reputable boutique law firm in Buckhead. Please give me a call or email me and I will put you in touch with them.


Dave Herren
Best Atlanta Properties
0 votes
Ken Guillen, Agent, Duluth, GA
Mon Dec 10, 2012
Dear Sir,

First, my blessings are with you...sorry the spouse bailed out on you in these troubled times.

Call Fred Kross, Real Estate Attorney. You will like him and he personnaly will make you feel comfortable. We have a short sale team of realtors in our office and he handles our short sale processes. He can also assist you in a bankruptcy if it is something you need to do to stall on the foreclosure. You can expect a friendly dialogue to discover the best moves for you. I am sure you are stressed to the limit when things beyond your control are dragging you down. Call Fred Kross at 770-932-8269. Tell him Ken Guillen said to call. You will fell much better!

Don't listen to the voices of Society right now. Seek the voices of wisdom and law and faith in at least goodness won't hurt you. It takes a tough mantle to make it through these times where government is a void and absent!

Send me an email if need be!

Ken, a friendly voice!
0 votes
, ,
Mon Dec 10, 2012
For any legal and/or tax advice you would need to consult with an attorney or a tax professional such as a CPA.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes
Michael Hamm…, Agent, Suwanee, GA
Mon Dec 10, 2012
If so, then call an attorney and make it happen. But with as many cards as can be left on your side of the table. If any. Once again, contact someone here if you need a good referral, and...Good Luck.
0 votes
hogwmfwa, Home Owner, 30044
Mon Dec 10, 2012
At this point I just want this to go away.
0 votes
Ava Anderson, Agent, Snellville, GA
Mon Dec 10, 2012
Hi hogwmfwa, like Fred said every scenario is different and you truly have to weight you options. Is the house currently listed? If you would like to discuss your situation further feel free to give me a call.

Ava Anderson
Solid Source Realty Inc.
Associate Broker
770 369-5121
0 votes
Fred Yancy, Agent, Woodstock, GA
Mon Dec 10, 2012
Options Available to You

Every homeowner is different, and the options available to avoid foreclosure will depend on your particular situation.

Your mortgage lender may allow you to reduce or stop payments temporarily. By doing this, you have time to pay off other bills, save money, or perhaps get a job. However, there is a catch. When you begin making payments again, you must submit your regular monthly payment plus an extra amount each month until you are up-to-date on your payments. That means your monthly payments will increase.

Loan Modification
If you can make current payments, but cannot catch up on late payments, your lender may agree to change the terms of the loan. They might add the missing payments to the total loan balance, lower your interest rate, turn your adjustable rate into a fixed rate, or extend the length of your loan. Unfortunately, most people do not qualify for a loan modification because of existing car payments, student loans, medical bills, credit card debt, or other financial obligations.

Deed-in-Lieu of Foreclosure
If you cannot catch up on your payments or sell your home in a reasonable amount of time, you might be able to transfer the deed to the lender to avoid foreclosure and protect your credit rating. Instead of waiting 5-7 years for your credit to recover, you could revive your credit rating within 4 years and qualify to finance a new home.

Short Sale
For many homeowners, especially those 30 to 60 days behind on payments, the short sale is the most practical option to avoid foreclosure. In a short sale, you sell your home, but the lender agrees to accept less than the amount you owe. In some cases, this means you will erase your entire debt and could rebuild your credit rating in just 2 years (instead of the usual 5-7 in a foreclosure). So in about 2 years, you could qualify for a new home loan.

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
0 votes
Michael Hamm…, Agent, Suwanee, GA
Mon Dec 10, 2012
Hindsight's always 20/20, hogwmfwa, but was there no way to get Wells, the Buyer, their Agent, your Agent, as well as you and your spouse together and somehow make that $15K payment to USAA happen? As far as your current options, you might consider speaking with an attorney. Tomorrow. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
0 votes
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