How is my credit affected by a DIL and foreclosure?

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

Andrea

Welcome to the forum

Even though you are makign ayments to the second lender, but defulted the first loan, the first lendeer will probably foreclose on the house. Some time sht efirst lender may work with the second lender to pay them certain amount. If not the second lnder will probably will charg off your loan and send the remaingin amount to the collection agency

About your taxes, You said you owe taxes to the IRS. I am assumign that this is your income tax, not the property tax. I do nto think you can escape from uncle sam

If it is property tax, then you do nto need to pay anythign if the house is foreclosed

Good luck and feel free to ask

manoj_gopale · Joined: 16 Feb 2009 Posts: 481 0.59 Dollars($)

Andrea,

second mortgage lender( the one on which you are current ) will be eventually contacted by the first lender and you can gauge it from a common sense that you will be in loss.you may even loose your home.

I think you should make sure if you can refinance the loan if your credit score is good enough then you should surely try for this.

keep in touch............

Guest

You have to look at what state you live in. In some states like Ca, there is a power of sale as security for the loan that means the lender takes back the home and sells it and your done they can not come after you for the deficency. This is limited to a first loan only that means the first loan you made to purchase the property, a first and second refinanced to one loan is still considered a first loan. But if you have refinanced your home your done.
I dont know of any lenders that are really modifying a loan thats why most get back into trouble, and no lender will because if it is done for one everyone will want the same deal and they are not going there. Lenders have already been bailed out by the Fed so they dont really care, your foreclosure is just a write off, why else would they foreclose on a home and say sell it for 250,000 when they could probably work out a deal with the owner for more money, again they dont want to go there it would tumble the whole financial game they are playing. Lets face it lenders made loans that should not have been made, they broke all the rules because there was too much money to lend and in the process drove up prices and then let them tumble. The whole economy for the last 10 years has been based on air money so every one that refied and bought a boat and a bmw benefited from what happened so all are to blame. when a lender said your 100,00 house is now a 400,000 house here is some money most took the money, so we have not seen the end yet, and finger pointing is bull because everyone benefited, if you signed a contract during this time you benefited if you got a job during this time you benefited.
The only real thing to do is to roll back and start over, hect the lenders have been paid for their air losses with bailout money anyway. I say every body quit making your payments until a roll back happens, the people rule they just dont realize it.

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