 mags65malibu
Joined: 22 Jul 2009
Posts: 1
1.34 Dollars($)
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 Posted: Wed Jul 22, 2009 7:28 pm Post subject: What are the repercussions of foreclosure? |
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| What do you know about foreclosures? Namely, in arizona. We are 5 payments behind waiting for our mortgage company to tell us if they will modify our loan or not. Bought it for 210,000 and its worth 140,000 because of the market in that area. We dont want to lose it but we are worried. Can't refin because we are upside down. Can't sell because why would anyone pay 210,000 for a house only worth 140,000. We both are State of California employees and this was a second home. We recently had an income drop of $1450.00 altogether due to the furloughs our governor has placed on State employees. Help. |
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jenkin7
Joined: 04 Jun 2007
Posts: 3429
Location: Hawaii
514.13 Dollars($)
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| Posted: Thu Jul 23, 2009 12:47 am Post subject: |
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Hi mags,
Since you are in financial difficulty and your income has dropped, I guess your lender will agree to modify your loan. A refinance is not possible since the property has gone down in value. But if your loan is owned by Fannie Mae or Freddie Mac, you may qualify for the Home Affordable Refinance Program, aimed at helping home owners with underwater properties.
In case you want to let go of the property, you can go for a deed in lieu of foreclosure. As far as I know, there are strong anti-deficiency laws in the state of Arizona. So, if there arises any deficiency from the sale of the house, the lender will not be able to sue you. |
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