I have a first and a second mortgage (2 different banks) on my home in California. If they don't foreclose what can happen if I don't pay

Asked by Annettski, Los Angeles, CA Tue Apr 17, 2012

on my 2nd.

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SERGEY FEDNOV…, Agent, Beverly Hills, CA
Tue Apr 17, 2012
If you dont make monthly payments they will issue a Notice of Default and they start Foreclosure process.

You have options there:

1. Loan Modification/Refinance ( You must qualify for these options)
2. Foreclosure ( do nothing)
3. Surrender property ( need to contact bank , sometimes they can offer you cash for keys).
4. Short Sale ( need to have Real Estate agent and must sell property for less then what you owe).

I personally think If you can modify loan to this property present value - it will be your best option if not - Short Sale is the best option because it doesnt dammage your credit as much as foreclosure and you also dont have to pay bank the difference between your loan obligations and selling price.

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Residential & Commercial Real Estate
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6 votes
Neal Grusky, Agent, Los Angeles, CA
Tue Apr 17, 2012
Here's the deal. The 2nd lienholder will foreclose as just a easy as the 1st lienholder. I will tell you something none of the other agents either dont know, or wont tell you. You must contact the us govt website. Controoler of currency.
http://www.occ.treas.gov/
If you contact this govt agency they will contact both of your banks and force them to modify your loans. The lenders will have vitually no choce once the you contact this govt agency. I have helped many people save their homes by letting them know that there is a govt resourse that will make sure
that the lenders follow through with each family that contacts them.
Please feel free to email me if you have any other questions, or call anytime. I would be glad to help.
Good Luck!
Neal Grusky

Hpremiere Properties - Real Estate and Financing 10940 Wilshire Blvd. Suite 1600, LA 90024 | Office: (800) 652-1768 | Fax: (800) 652-7604
1 vote
Ron Thomas, Agent, Fresno, CA
Tue Apr 17, 2012
the 2nd lienholder can foreclose just as easily as the 1st!
1 vote
Kawain Payne, Agent, Seal Beach, CA
Sat Apr 21, 2012
Neal Grusky has given you the BEST ANSWER!

The Controoler of Currency has enacted some new laws to help home wners in your situation.

Best of Luck to you,

Kawain Payne, Realtor
0 votes
Madelaine Ko…, Agent, Los Angeles, CA
Tue Apr 17, 2012
Madelaine Kolisnyk answered:
Home Seller???

A short sale will affect your credit. However the short sale itself is not what causes the big credit point hits. It’s that coupled with missing payments. Missing payments is what does more damage. However in under 2yrs, you can really boost your credit score back up by remaining current on all other debt obligations.

It is possible to complete a short sale without ever missing a payment. It is possible to do a short sale without having a severe hardship. But you must show your tax returns and a hardship letter must be given to any bank.

If this is your primary residence or you lived in the property 2 out of the last 5yrs, you can qualify under the Mortgage Debt Forgiveness Act of 2007, so the IRS or the State can’t tax you on the negative amount.

It’s not automatic that the bank won’t go after you for a deficiency judgment on the negative balance, however it’s something that I’m able to negotiate OUT. If your 2nd lien was a PURCHASE MONEY loan than the 1st will need to offer them 10% of that $75k balance in order to get the 2nd lien to Release you as paid in Full. Again this is something that we negotiate for the 2nd lien holder to do.

It may be possible to get the $3k for relocation expenses, this is under the HAFA program. Your 2nd lien holder will likely NOT agree to accept the Max the 1st can offer them, which is $6K. They will want a min. of $7500, so that will kill your attempt for going through the HAFA program.

I negotiate short sales for clients successfully within a 285 mi. radius of where I live. I don’t need to be your next door neighbor to assist you with selling your home as a short sale. Please email me directly so we can talk about this further.

Madelaine Kolisnyk Realtor Los Angeles ca 310.869.1712 - Mon Jul 11, 2011
Hi , My Name is Madelaine and my team and i specialize in Short Selling property all over Los Angeles. We are in escrow with about 7 now. All going through. Need to make an appointment with us to see your home and discuss your situation.. Your circumstances have a lot to do with you getting relo fee and the bank accepting your property as a short pay.

Short Sale Expert
Madelaine Kolisnyk
310.869.1712 http://www.MadelaineK.com - Tue May 17, 2011
0 votes
Nadia Fahimi…, Agent, Santa Monica, CA
Tue Apr 17, 2012
The second can file a Notice of Default and start the foreclosure process-
Currently the government has policies and procedure in place to assist with the short sale process- The homeowner will get reimbursed for up to $3,000 for cooperating with transaction -
The program will pay up to $6,000 towards Junior liens and even pay the investor to cooperate with the short sale- it could all be taken care of in a couple of months-
Please call me so I can let you know if you qualify - I will be happy to help out any which way I can-

If loan modification is an option try and do that-
Otherwise, - Short Sale would be the best option for you-
Foreclosure will damage your credit tremendously and for a very long time- with short sale you could start repairing your credit in as early as 24 months-

Nadia Fahimian
Certified Distressed Property Expert
HAFA Certified
Broker
424-777-9040
http://WWW.SHORTsense.com
0 votes
Douglas Perez…, Home Buyer, Los Angeles, CA
Tue Apr 17, 2012
It's time to take a realistic decision about your home.
Call me up to find out your options.
Douglas Perez
Short Sale Specialist
(213) 375-8741
Doug@cashrealty.net
0 votes
Richard "RJ"…, Agent, Beverly Hills, CA
Tue Apr 17, 2012
Annettski,
Your 2nd can also foreclose. You should seriously consider what your short and long term goals are with owning this property. I specialize in this type of situation with homeowners and I would be happy to consult with you and go over your options in person without any charge or obligation to you. Please contact me directly if I can be of assistance. I am highly experienced and known to be an expert in this field.
Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0690 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes
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