Posted: Sat Mar 21, 2009 6:31 pm Post subject: Protecting Equity with a Mortgage in the state of Hawaii
How can I protect the equity in my house with a mortgage? If the mortgage is defaulted on can the lender sell it out from under me for the value of the note rather than the market value? If they sell it for more than the note do they have to compensate me? If not, I would loose all of my built up equity. I have a warranty deed. If I transfer title from my individual name on the warranty deed papers into my revocable living trust name will this protect me? Is that what I am supposed to do or am I supposed to use/transfer it to a quitclaim deed if I can in the state of Hawaii? In general do I need the approval of the lender? Countrywide has just been taken over by B of A. This will be about my sixth lender as they keep flipping the loan. Does credit card debt fit into the equation anywhere? Any help will be greatly appreciated. Aloha!
If you have defaulted the mortgage, then the lender will foreclose the property and sell it off to recover the debts. If the property sells at a higher amount than what he owes to you, then the lender will return the excess amount to you. If you have already defaulted the loan, then I don't think you will be able to transfer the property in the name of your revocable trust.
Quote:
Does credit card debt fit into the equation anywhere?
I did not understand what you wanted to say by this. Can you please explain? _________________ Procrastination is the enemy of your financial sucess
Posted: Sun Mar 22, 2009 9:17 am Post subject: Protecting Myself From Loss of Equity
I haven't defaulted. I have no intention of defaulting. I have approximately and conservatively $200,000. in equity even in a down market. This amount is only one half of what it has been insured for for years. It's been insured for $700,000 without the improvements I have done over the last five years. I have a fixed loan at 5.25%. The issue is that I have been downsized. I am not sure what my future employment situation is. I want to do paperwork now, in case the future is not manageable. With this in mind what can I do? How to transfer the property into a revocable trust is what I need to know, assuming that will take care of any future problems. The lender doesn't care about my personal investment. As far as I know they just want the loan amount back. The purchaser would realize hundreds of thousands of dollars of equity. Is the lender required to sell the property at market value? How does this work? I don't want to loose a lifetime of work over not being able to pay a mortgage that was reasonable under normal employment situations.
Ana Guest
Posted: Mon Mar 23, 2009 4:24 am Post subject:
You can contact an attorney and check out with him how you can include the property into the revocable trust. The lender will sell the property at its present market value. If there is a deficient amount from the foreclosure sale, the lender will demand it from you.
Yes, one is always advised to see an attorney. I had an appointment with a volunteer services attorney. She didn't know the answers to any of my questions. It's extremely difficult to find a real estate attorney where I live. My experience with attorneys is they won't move a muscle without thousands of dollars. And then it is a simple one to three pages to file. So you are saying that the lender will be obligated to sell the property at market value? What if buyers won't pay market value? Short sales are everywhere. A short sale is when the lender sells it only for the amount on the note. If there is a deficient amount, how can the lender demand it from me? What can they do to me?
The lender will sell the property at it's market value and he will demand the deficient amount resulting from the short sale of the property from you. If you cannot pay the deficient amount, then the lender can either place lien on your other property or garnish your wages or savings account. _________________ Procrastination is the enemy of your financial sucess
beadinout
