Posted by Karine on June 11, 2006 at 18:16:27:
Thank you for your reply.
Karine
Foreclosure - Posted by Karine
Posted by Karine on June 09, 2006 at 24:22:45:
Hello,
I am an owner of two properties, one in CA and another in MA. I am unable to pay for the property in CA. My question is - when the CA property will go to a foreclosure will the banks (I have two loans, the property was purchased with NO MONEY DOWN) go after my property in MA? Will they have any right at all to take that property away from me?
Another question that I have - is it possible to declare bankruptcy while one has property, payments for which have never been late?
Thank you in advance.
Karine
Re: Foreclosure - Posted by BTL
Posted by BTL on June 11, 2006 at 11:36:03:
Karine
I’m not clear on the facts but if you are living in the home in California, and it is a SFR, state law does not allow a deficiency judgement, so your credit will be damaged but there won’t be money owed.
BTL
Re: Foreclosure - Posted by Max-Va
Posted by Max-Va on June 09, 2006 at 16:39:03:
Depends on the numbers. If you owe 600K and the property is trashed and it brings 400K at auction, the lender can file a deficency judgement for 200K plus foreclosing fees against you and it can attach to any property you own anywhere if the lender’s attorney finds it.
That is why you would be better off selling or contacting the lender and offing the deed in leiw of foreclosure, but request that they not go after the deficency. You may have to pay taxes on the difference
Re: Foreclosure - Posted by River City
Posted by River City on June 09, 2006 at 08:42:33:
Your loan documentation (mortgage or security deed, trust deed, etc) should state the properties for the liens. The lender will only take the properties listed in the documents. If there is an outstanding balance, the lender may or may not come after you for this.
Most lenders will consider accepting voluntary conveyance as an element of loss mitigation evaluations. This is especially true when the foreclosure process is time consuming, expensive, or where there is an extensive redemption period. Generally, deeds may not be accepted from mortgagors who are judged able to make the mortgage payments or simply as a matter of convenience for the mortgagor.
You should contact the lender(s) and explain the situation and ask them if they will work with you to work out an agreement that is satisfactory to both you and the lender.
Re: Foreclosure - Posted by Karine
Posted by Karine on June 11, 2006 at 18:15:47:
Thank you for your response, I am not clear however on what does SFR mean. Could you please explain?
Thank you,
Karine
Re: Foreclosure - Posted by Karine
Posted by Karine on June 10, 2006 at 15:43:56:
Thank you so much for your reply. I do have more questions though…
What does Deed in Leiw mean? How can I request that they do not go after the deficiency? What difference are you talking about (the difference in what I owe and what the property will sell for at the time of the auction?)? If I have two loans for that property and both of these loans from the same bank - do I need to make the agreement above for both loans? How would that affect my credit history? I understand the effect will be negative… but how bad actually is it going to be?
Re: Foreclosure - Posted by Karine
Posted by Karine on June 09, 2006 at 13:57:02:
Thank you for your response, I do have another question though. What do you mean by saying that the lender could come after me for the outstanding balance? Are they going to issue liens or we could try to come to an agreement as to how much I would have to pay them?
Also, if I sign my property in MA over to a relative as a gift but still be liable to make payments on it - will the lender in CA be able to take that property from me?
Re: Foreclosure - Posted by River City
Posted by River City on June 12, 2006 at 07:14:28:
SFR means single family residence.
Re: Foreclosure - Posted by Max-Va
Posted by Max-Va on June 11, 2006 at 09:24:39:
This you would have to work out with the loss mitigation department at the lender. It is a volentary repossesion/ foreclosure. You would sign the deed over to the lender and save them the time and expense of foreclosing on the property.
I think you are talking about a 1st and 2nd with the same lender, if this is so, just reference both loan numbers
Be sure you get any agreement concerning deficencies and credit reporting in writting. This is all negociated terms and each will be different.
Worst case credit would be foreclosure which would stay 10 years and drop your score by 50-10 points after about 12 months you could buy another property again but it would be expensive, high fees, high rates, low LTV, but it is possible. It would affect all things related to credit issues, credit cards, car loans, insurance preminums, ect.
I am really not an expert on this but have delt with this as a investor and mortgage broker(for a year).
Remember most lenders do not want the property. They deal with money, not real estate.
Contact the Loss Mit Department and discuss your options, a forebarance agreement could help this as well.
After rereading the original post; You question of BK. BK would bring all your assets into the mix, both houses, all credit, cars, ect. would be looked at by trustee to find equity that could be liqudated in order to pay the debt. Maybe not a good option?
Re: Foreclosure - Posted by Greg
Posted by Greg on July 09, 2006 at 19:36:39:
The question of whether the lender has a right to go after you for $ owed or just the property depends on your mortgage documents and possibly state law. Typically first purchase mortgages CAN NOT go directly after the owner and typically refinanced mortgages CAN go after the owner’s assets. You need to carefully read your loan documents and possibly ask a professional. I wouldn’t be surprised if there were exceptions for things like intentional damage by the owner.
If the lender does have the ability to go after your assets than that clever little idea of yours (of gifting the MA property to a relative) will be discovered and labeled with a clever little name - “fraudulent conveyance”. Don’t go there.