Foreclosure on my secondary home

Asked by Jl8656, Mon Jul 16, 2012

Currently live in SD California. Have my prior home in Texas. I tried selling but with the market it was difficult. The home was worth less than the mortgage amount. On top of that I tried renegotiating with the bank as well at that time because the mortgage payments were high and getting higher. No luck as well. We had to moved because a Realtor presented a different option to us to sell. He would sell it within a year and handle Mortage payments while it sold and I had to do a deed of trust to his name. Of course we were clueless trusted him but after we had already to CA I hear from the bank that the Mortgage wasn't paid so I took back my home but now living in California very hard. Ofcourse now I'm renting but the Tenants haven't paid rent and I can't afford that additional payment. I have my primary homes Payment. I'm thinking of letting it go foreclosure. Its been so stressful trying to sell ..renting ...now this. Please any advise.

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15
Jl8656, Home Buyer,
Tue Jul 17, 2012
Wow everyone gives many different opinions. Truth is we are truly not in the situation to be wasting more money. This is why we thought of letting it foreclose. I already gave these current tenants the 3 day notice but I know to evict I will have to file in court and go to Texas unless I get an attorney which means more money. I'm honestly not sure where to go fro
Here. Thanks everyone for your options
1 vote
Guy Gimenez, Agent, Austin, TX
Tue Jul 17, 2012
A little bit of information is always dangerous...more especially so when agents are involved. And no offense to any specific poster here, but I would suggest more detailed research before posting erroneous information as fact. While this is not unusual for traditional agents, it seldom performs a valid service for consumers.

Sure foreclosure is a last resort, not a first. But pretending a short-sale has no emotional consequences is disingenuous on its face, more especially when you're seeking that very business.

JL8656, be wary of those offering gifts from their left hand while holding out their right hand and hoping for a gift in return.
1 vote
Carolyn Wolfe, Agent, Houston, TX
Tue Jul 17, 2012
Get advice from a Texas Real Estate attorney to verify what exactly your rights are.
0 votes
Jim Mcninch, , Houston, TX
Tue Jul 17, 2012
I strongly disagree with those on this forum telling you to walk away from the mortgage! First, telling you to stop payments by a real estate professional is fraud by the lending institution. Second, there are alternatives to foreclosure.

A foreclosure would decimate your credit unnecessarily. A short sale would be a better option. As discussed in other comments, the lender will short sale your property by reducing the payoff to or below market value. The short sale will require a bank specific short sale package filled out and the property listed by a real estate agent to proceed.

Also, you will need to remove your tenants as they will probably make the sale difficult.

We specialize in short sales. Please call me if you have other questions or need assistance.

Jim McNinch
832-330-4588
0 votes
Chrissy Lynn, Agent, Spring, TX
Tue Jul 17, 2012
Dear Home Owner,

Have you considered a short sales? Also, have you considered a managment company to handle your rental? This would take a lot of the pressure off of you. I would try other options before foreclosure.
0 votes
, ,
Tue Jul 17, 2012
I can't give you short-sale advice, but I definitely wish you would report the Realtor who defrauded you to the Texas Real Estate Commission. It seems to me he should lose his license, and I am interested in the comments of the other Realtors who contribute on this site.
Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
0 votes
Jl8656, Home Buyer,
Mon Jul 16, 2012
Does a short sale mean I have to pay the mortgage payment which I don't have and can't afford? Does q foreclosure affect my current debt like my car payments or my current residence? I'm up to date on all my other accounts always current. Its just this home in Texas that I have a missed payment
0 votes
Short sales are negotiated by the bank to see how much of the outstanding loan amount can be discounted. If there is still an outstanding amount left over, it does need to be paid by the seller, but it is all negotiable. A buyer may be interested enough in the property to pay something additional. Unless you speak with a realtor and discuss the process, you will not know exactly what this entails. Short sale does affect credit a bit, but definitely not the way a foreclosure would. I know folks who concentrate only one this process and have also spoken with some that know how to deal with banks to help buyers get out of this dilemma. Let me know if you want to work with this and I can refer you to someone who is knowledgeable about the entire process.
Flag Mon Jul 16, 2012
Marla Van Ov…, Agent, Houston, TX
Mon Jul 16, 2012
Are you familiar with a "Short Sale"? It is a negotiation with the bank to agree to accept payment "short" of what is owed. As a realtor we list it as a short sale and the buyer knows that they are buying into a home with equity, ie they pay less than the overall current value of the house.
You avoid Forclosure which is the LAST thing you want to do.

This is a very common, very legitimate practice.

I would be glad to discuss it in more details. Please feel free to contact me
@ marla@spectrumftbend.com
I hope to hear from you,
Marla Van Overbeke
Broker/Owner
Spectrum Realty
0 votes
Carolyn Wolfe, Agent, Houston, TX
Mon Jul 16, 2012
You need to get your Realtor to give you good rental comps to determine the top rental amount you should be getting. If you arent able to get enough rent to cover the Mortage, Insurance, taxes, and property management, then it doenst make sense to "continue the charade" as Guy put it.

It is a shame that you havent gotten the non-paying tenants out because the Rental Market is booming and Back to School starts Aug 27th in most ISD's in the Houston Area. Have you started the eviction process with them yet?

In deciding if you want to let it go, do have your financial advisor run your credit so you can decide if letting it go Cash For Keys/Foreclosure will hurt your credit badly or just ding it up. Or if it even matters to you at this point.
But it does help to make an informed decision, and no matter what you decide, if you have explored all of your options, then the decision that protects your primary home and your family will be the best one. With things the way they are, no body is in the position to judge you.
Good luck to you,
0 votes
Guy Gimenez, Agent, Austin, TX
Mon Jul 16, 2012
From a purely business standpoint, how does it benefit you to continue throwing good money after bad. Cut your losses and run. That's exactly what I would tell a member of my family were they in this situation.
0 votes
Persis Behra…, Agent, Cinco Ranch, TX
Mon Jul 16, 2012
How long ago was it that you tried selling - is this recent? Is your property in a part of town that can quickly? There may be other avenues to sell without foreclosing, but I am not sure if or what you may have tried.
Persis
713-294-7747
persis.realtor@gmail.com
0 votes
Jl8656, Home Buyer,
Mon Jul 16, 2012
I also already have to pay out of pocket to make the payments each month and payment increased again.
0 votes
Jl8656, Home Buyer,
Mon Jul 16, 2012
I have been renting it for six months now ..Its not easy to rent from another state..I spent money after the Realtor messes up with the unpaid payment so I had to pay almost 3k to fox up the home and pay the missing payments and traveling down there. Now this Tenant isn't paying I know it will fake time to evict and more money and a missed mortgage payment already.
0 votes
Carla Wade, , Houston, TX
Mon Jul 16, 2012
I would put a housing tenant that would guarantee the rent.
0 votes
Guy Gimenez, Agent, Austin, TX
Mon Jul 16, 2012
Based solely on the info you've provided here, I would let it go and move on with your life. Your desperation shows and you really have nothing to gain by continuing the charade.
0 votes
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