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 bweston1970
Joined: 17 Jun 2007
Posts: 1
1.89 Dollars($)
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 Posted: Sun Jun 17, 2007 3:10 pm Post subject: Any help re: mortgages, selling, avoiding foreclosure, etc. |
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Hello,
I am glad to have found these forums as information is sometimes confusing and hard to come-by. OK here is my situation:
I have a home in So. Florida. $280,000 1st mortgage with Litton, $115,000 2nd mortgage with Bank of America. Home is up for sale but, as can be expected here, there is no movement. I am current on all payments, however as of Dec 2007, I will no longer to be able to sustain paying for the home, especially after the ARM adjusts in October. Questions:
1. If I sold the home, by owner, for a loss, let's say $375,000 and used $280,000 of it for Litton and $95,000 for BofA, would BofA convert the remaining $20,000 to a loan that I could just pay on? I am trying to avoid foreclosure-type of situations.
2. When I run out of money to pay, I will have to start missing payments in order for the banks to even begin to work with me. I know, I have called and tried and they will not help unless I am already in trouble. How would I approach the short-sale or D-i-L with them?
Any advice or help is greatly appreciated.
Brian |
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sara
Joined: 05 Jul 2006
Posts: 1063
Location: New Brunswick, New Jersey
201.78 Dollars($)
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| Posted: Sun Jun 17, 2007 11:41 pm Post subject: RE: options to avoid foreclosure |
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Hi Bweston,
Welcome to the forums.
What I feel is, if you pay off the first loan and some part of the second, the reaming part of the second loan will not be taken as a new loan but a continuation of the same. So, just call up BofA and have a talk with concerned people and explain them what you exactly wish to do in order to pay down the debt. Show them that you're really concerned about clearing the debt and I guess it will work out that way.
However, if it does not work out that way, then you can think of doing a short sale or deed- in-lieu as allowed by the bank. For that, you need to approach the loss mitigation department of BofA and tell them about your plans.
Take Care |
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sammons
Guest
0.10 Dollars($)
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| Posted: Mon Jun 18, 2007 1:08 pm Post subject: |
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| Quote: | | I will no longer to be able to sustain paying for the home, especially after the ARM adjusts in October. |
Brian you considered refinancing to come out of this ARM? |
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miller_st
Joined: 17 Jan 2007
Posts: 917
168.82 Dollars($)
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| Posted: Mon Jun 18, 2007 4:13 pm Post subject: |
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| Quote: | | If I sold the home, by owner, for a loss, let's say $375,000 and used $280,000 of it for Litton and $95,000 for BofA, would BofA convert the remaining $20,000 to a loan that I could just pay on? I am trying to avoid foreclosure-type of situations. |
BofA will not agree to any such plan where there lien will be removed from the house but they will continue to accept the payments on the balance loan amount.
| Quote: | | When I run out of money to pay, I will have to start missing payments in order for the banks to even begin to work with me. I know, I have called and tried and they will not help unless I am already in trouble. How would I approach the short-sale or D-i-L with them? |
The bank only considers a dil or short sale when there is a real financial crisis because of which the borrower is unable to make the payments. But currently you have on time payment record with them that is the reason they are not willing to consider these options.
Miller |
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