Foreclosure Evaluation

Guest 0.10 Dollars($)

Caron: When you say completion, do you mean they own the house then. Also how am I going to get contacted about it. Under the Bankrupty laws they are not allowed to contact me, however, I did receive a letter from an attorney saying something about I have 30 days to dispute the amount of the second mortgage. So far nothing has been said about trying to work out an arrangement. If this was a 1st mortgage I would understand the circle of events but it being a 2nd mortgage it can become hard to follow. Does anyone have any ideas how the process will take place. Like who notifies me of what is going on so I can make my plans on my end.

Caron

Hi Jerry,

By completion I mean that the lender will have by then carried out a public auction of your property. He can retrieve the balance amount of the second mortgage from the sale proceeds. So, what you have understood is right; the property will no longer be yours. And, it is the lender who will inform you about the entire proceedings. You should also keep in touch with him in case there is any legal formality that you will have to go through.

If your lender hasn't yet called up, then you should contact him and clarify your doubts regarding the process. The foreclosure laws vary from one state to another. Therefore, a foreclosure attorney will be the best person to guide you regarding the process.

Hope to hear from you soon.

Thanks,

Caron.

Guest 0.10 Dollars($)

Thanks, but now I am getting lost again. The 2nd mortgager can't sell the property at public auction until they pay off the first mortgage which is approx $40,000. So they the 2nd mortgager would have $60,000 invested and if then sold at public auction they would be lucky to get $25,000 just to get rid of it. So with that in mind, why would they pay off the 1st mortgage. This is what I am trying to understand

Caron · Posted: Sun Jul 16, 2006 8:13 pm Post subject: RE: First mortagge payoff

Hi Jerry,

Welcome back.

I think I can now understand your question. It's all because the second mortgage lender cannot get his money until and unless the property is cleared off the first mortgage.

The first mortgage lender always has the primary rights over the property and hence that is the reason why your second lender would invest to pay off your first mortgage. This will help him to clear the title from the first loan and then carry out the foreclosure for the second loan.

Hope this is clear to you now. Do let us know if there are other queries.

Thanks,

Caron.

Guest 0.10 Dollars($)

Caron I am finally glad you are beginning to understand my original question. Now one for you to think about. What is your thinking about the 2nd morgager paying off the 1st mortgager to take title and then start the foreclosing procedure. The 2nd mortgager would have almost $60,000 invested being $40,000 for the 1st mortgage and $20,000 for the 2nd mortgage, and the property would probably sell in the $35,000 neighborhood. To me that is not a smart decision. I understand what is going on, I was just looking for someones evaluation if a 2nd mortgager would realize this and just write it off.

Caron · Posted: Mon Jul 17, 2006 11:45 am Post subject: RE: Write off second mortgage

Hi Jerry,

Yes, I do agree with you. This may not be a wise decision but then lenders often do not write off mortgages. The lender may write off a part of the second mortgage and not the whole. Also, he may not get back the entire $60,000 but then he can retrieve at least $35,000 through the sale. The whole thing actually depends on the second mortgage lender.

Thanks,

Caron.

blue · Posted: Mon Jul 17, 2006 12:33 pm Post subject:

In some cases like that, the lender allows the borrower to do a pre-foreclosure sale or short payoff. The lender will accept less than the full amount owed as the sales proceeds do not cover the loan.

Thus the lender is able to avoid the additional costs of foreclosing although he has to accept the loss on the sale.

Guest 0.10 Dollars($)

I don't want to do a pre-foreclosure sale. or short pay-off. Remember I filed bankrupty and the mortgager can not contact me about any pre sale or work out any arrangements. But I will say this, I have contacted the 2nd mortgager 3 months ago and they refused to work with me. Which left me no alternative but to allow them to pay off the 1st mortgage and own it or write it off. That will be there decision not mine. At my age and health conditions, it probably would be to my advantage to let them have it. Then I am free of my 1st mortgage obligation and can move into a senior citizen apartment and it surely would make my life easier Smile

... Again I want to thank everyone who had some input on this. It really didn't give me the answers I wanted, I guess that will be the 2nd mortgager decision, but it sure released some stress. I have to recommend your site for theraputic measures for sure. LOL

blue · Posted: Mon Jul 17, 2006 1:13 pm Post subject:

Hi Jerry,

It's just an option I talked about from the point of the lender. In any case they can't approach you now as you have filed bankruptcy. Smile

IMO, they will be forced to accept the loss but still they might not write off the debt and can sue you for this in future although I don't know how much they will gain with that.

You may face harassment for sometime. But yes, that's their decision and I too feel you should not put in more stress to your mind at your age. Wish you good health.

Regards,
Blue

Guest 0.10 Dollars($)

Thanks Blue, But I have to correct you.. They cannot sue me or harass me I file Bankrupty in 2003.

blue · Posted: Mon Jul 17, 2006 2:37 pm Post subject:

Yes they can't sue you unless they obtain a "relief from stay". What type of bankruptcy did you file, BTW?

Guest 0.10 Dollars($)

Chapter 13 in 2003 before the new law went into effect

Caron · Posted: Mon Jul 17, 2006 8:10 pm Post subject: RE: Second mortgage decision

Hi Jerry,

You are right, the decision regarding the second mortgage has to be taken by the second mortgage lender. Our Community can only give you suggestions as to what is possible and what can be done so that you benefit from the decision. It's the lender who has to decide.

At your age, it is always good to be free from financial obligations and lead a tension free life. So, I think you are on the right path.

Happy to know that we could give you some relief.

Hope you have an easy life ahead. Smile

Caron.

Guest 0.10 Dollars($)

Now that they have a judgement for foreclosure can I assume that the 2nd mortgager will send an appraiser around to evaluate the value of the property before paying off 1st mortgager and placing it in public auction after the required 90 day redemption period has expired.

Caron · Posted: Tue Aug 22, 2006 2:46 am Post subject: RE: Appraisal before foreclosure

Hi Jerry,

The second mortgagor can send an appraiser to evaluate the value of the property before paying off the first mortgagor and placing it in public auction after the redemption period.

The appraisal is done to find out if the lender may suffer a loss and by how much when he sells off the property at the public auction.

Thanks,

Caron.

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