My second is a intrest only equity loan. What happens if I default?

Asked by Mike, Michigan Sat Jan 31, 2009

I was laid off in Late October 08. Running out of cash, and ideas. Looks like I will have to default soon.
My main concern is the second interest only equity line. I'm so upside down the first it prob. will not be covered after auction. I'm in Michigan. I owe 125,000 on the first, 40,000 on the second. And have credit card bills....ugh

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smith3gary, Agent, White Lake, MI
Sat Jan 31, 2009
Mike,

In addition, the State of Michigan is running commercials about Save the Dream. They may be able to help you negotiate.

http://michigan.gov/mshda/0,1607,7-141-45866_47905-177801--,…
Web Reference:  http://mi-living.com
1 vote
Maureen Fran…, Agent, Birmingham, MI
Sat Jan 31, 2009
Mike,

So sorry you are in this situation. It is all too common in Southeast Michigan right now.

There are many articles on our blog about short sales and foreclosure. I have linked to the short sale articles for you below. You can do a search in the sidebar for foreclosure articles if you wish.

You might also want to get in touch with HopeNow http://www.HopeNow.com

As for what happens, if you sell short, then the second mortgage will have to negotiate for what it will accept in a short sale. It will be a few thousand dollars, typically. If you foreclose, then they will get nothing if your home is less than what you owe the first. Your credit card debt is unsecured.

I would be happy to talk to you. Our team has helped many sellers like you with short sales and we are just down Woodward from you in Birmingham.

Good luck.
1 vote
Maureen Fran…, Agent, Birmingham, MI
Sat Jan 31, 2009
Gary,

That is a very good link. You give such helpful answers to consumers!

Maureen
0 votes
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