I am in the same situation. Current on the first and second has gone to a collection agency and i told thme i

Asked by Tapper, Ohio Thu Jan 22, 2009

have no money!!!! They said they will set a court date? What is the likely hood that the second will start the forclosure process. Help?

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C clark, , 43147
Sat Jan 24, 2009
BEST ANSWER
Have you spoke with your lenders on your first and second mortgage about doing a loan modification on both(ask to speak to loss mitigation)? Yes, a short sale is an option, but I'm going to assume you would prefer to keep your home, so this is an option to explore. Not everyone has had the same success story, but there are plenty of them out there. Financing and law are not my area of expertise, so I recommend speaking to someone better qualified than just my opinion. I have also seen people file I believe chapter 13 bankruptcy and have their second mortgage 'stripped' depending upon the current market value of their home ect. You have many different avenues to explore if you want to keep your home. Don't delay though, time is of the essence! Best wishes to you.
0 votes
Linda Slocum,…, , Santa Clarita, CA
Sat Jan 24, 2009
The first should be notified if the second is wanting to foreclose, since the first typically has much more to lose.

Your first step would be to contact both banks and request a loan modification. However, if you have no income and no available funds, they may not be able to do this for you since they will want you to be able to pay the monthly payments on the newly-adjusted mortgage.

If a loan modification is not available to you, then your next step would be to do a short sale. Notify both banks that you are working with a Realtor to do a short sale, and they should be able to extend your auction date if you're not too far along in the foreclosure process. However, if you are too close to the scheduled auction date and the first doesn't step in to forestall this, then a short sale may not be an option that is available to you.

Good luck!
0 votes
Brittany Sim…, , Columbus, OH
Fri Jan 23, 2009
Tapper:

Unfortunately, the lender of your 2nd can begin the foreclose process if you are in default on your credit line. A Short sale or deed in lieu of foreclosure are two options you may want to explore with your lender.

There are alot of owners in your position. god bless and good luck.
0 votes
John Wirsing, Agent, Pepper Pike, OH
Thu Jan 22, 2009
Tapper,
Sounds to me like that the best choice here may be to do a short sale. This may allow you to stay in your home as you move toward selling it.
Your creditors need to sign off on any offer that you accept and acknowledge that the proceeds from your sale will satisfy them as payment in full. They may be inclined to work with you because they will save the $40-$50,000 that the foreclosure process will cost them.
You need a Realtor who is experienced with short sales. If I can assist you with this, plase give me a call at 440-487-2193 or e-mail me at jwirsing@kw.com
0 votes
Jill Laseke, , Conneaut, OH
Thu Jan 22, 2009
Please contact me to discuss your situation. I'll be happy to help in any way I can.
0 votes
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