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Evin
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Post subject: |
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That does not happen in a foreclosure on homes with second mortgages.
If it's a deed in lieu accepted by first lender, then it's his liability to pay off the second loan. But inr a foreclosure, if the home sale proceeds do not cover the second loan balance entirely, then the second lender demands it wither from the borrower or attends the home sale and bids such that he gets his money through the sale. or else, the second lender can go for a charge-off and forgive the debt. But he may also issue a judgment against the borrower or garnish his wages through court order. |
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hemet prop.
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Post subject: dil with 2nd mortgage |
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can the lender go after us ,and require us to pay the 2nd mortgageif the second mortgage is the same lender as the primary mortgage lender after a DIL.
pls respond |
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larry
Joined: 27 Jun 2007
Posts: 3322
474.67 Dollars($)
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Hi Hemet,
After a deed-in-lieu on the first mortgage, if the lender finds that you are unable to pay off the second mortgage, he may charge off the loan and will accept the outstanding balance of the loan as a loss. |
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Doris
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Post subject: DIL or Foreclosure with 2nd mortgage |
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We own a home with my father in law. We have never made a late payment (past the 30 day mark) but our interest rate just jumped and it is becoming very difficult to make the payment prior to the 30 days late.
We have been weighing our options and are not sure what we should do. We owe $460 on our home and according to a few lenders/appraisers, our house is valued at $470 to $475. Our first and second loan are with different companies. We have listed the house but with the market the way it is, you can't get a 100% loan so whoever were to buy our home would have to come in a substantial down payment. That possibly will not happen.
Do you think a DIL is a possibility? My father in law just added my husband to the title a few weeks ago but my father in law is the only one on the loan. If a DIL is an option, who's credit will it affect?
Please respond asap.
Thanks |
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jenkin7
Joined: 04 Jun 2007
Posts: 4537
Location: Hawaii
728.43 Dollars($)
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KarenP
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Post subject: DIL - Advice from my lender |
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| I lost my high paying job in the homebuilding industry early August 2007. I have yet to secure new employment. As soon as I lost my job, I listed my home for sale at market value of $660K. I have since had 3 price reductions down to $550K, and still no showings. I contacted the 1st lender yesterday (Countrywide) and after evaluating my financial circumstances they agreed to a DIL knowing that another lender holds a 2nd. They offered to start the process immediately and were very sympathetic. To top it off - this home is only 1 1/2 years old and I was electrocuted in Jan. 2007 simply by unplugging a vacuum cleaner. A construction defect report indicated numerous fire, electrical and safety issues which the builder has not completely corrected. I suffered personal injury and am heading towards litigation using a PI law firm retained as soon as I was injured. The lender knows that the home has issues, which apparently they do not need to disclose and can sell the home "as is". They suggested that I start looking for a place to live and move out within the next 30-60 days. As long as I keep them informed they agreed to cooperate. I am actually starting to feel relieved however will wait and see how things progress. |
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jenkin7
Joined: 04 Jun 2007
Posts: 4537
Location: Hawaii
728.43 Dollars($)
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Post subject: |
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Hello Karen,
It is unfortunate to hear of your situation but at the same time it is good to know that your lender is co-operating with you.
In case of a deed in lieu, the lender cannot seek a deficiency judgement.
Is the present price sufficient to pay off both the mortgages? |
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larry
Joined: 27 Jun 2007
Posts: 3322
474.67 Dollars($)
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Post subject: |
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Hi Karen,
| Quote: | | As long as I keep them informed they agreed to cooperate. I am actually starting to feel relieved |
This is why we always suggest you to contact the lender as soon as possible whenever you face problem with your loan payments. You are the live example who gets help from the lender and now feeling relieved because you have informed the lender and co-operate with him. I hope people will see your post and will learn that it will be always helpful if you co-operate with your lender.
It will be helpful for us if you can update your situation. Feel free to ask if I can provide you any further information.
Thanks,
Larry |
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evolovik26
Community Expert
Joined: 15 Aug 2007
Posts: 537
Location: Minneapolis
28.93 Dollars($)
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Jeanette
Community Expert
Joined: 19 Oct 2007
Posts: 121
Location: 760 Lynhaven Parkway, suite 140 Virginia Beach, Virginia
36.28 Dollars($)
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Post subject: |
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| Quote: | | When you do a deed in Lieu with the primary mortgage what happens if there is a second mortgage held against the property? Also, If the bank is not able to satisfy the amount owed against the property, will there be a judgement against me for the difference? |
Before you can even consider an alternative, the borrower must be willing to offer a deed in lieu. There are advantages to taking a deed in lieu. It could save you time and money. You should order a preliminary title report and review it carefully to determine if there are any junior liens that would survive the deed in lieu. You then take the deed in lieu subject to a title insurance policy being issued in your favor as reflected in the preliminary report. This procedure would take a lot less time than the approximate four months of foreclosure. The main disadvantages to taking a deed in lieu of foreclosure are the junior liens will not be extinguished and that the, as a borrower, you may later have a change of heart and seek to have the courts set the deed in lieu aside.
A junior lender, should give the senior lender notice of their lien. Many lenders would like to reduce their collection efforts by having the junior lienholder advance to their loan. Send the primary lender a notice which tells them that you are willing to reinstate their loan. |
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Kathy
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Post subject: Deed in Lieu - HSBC and HFC |
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| Hi, my first morgtage is with HSBC and my second mortgage is with HFC (a subsidiary of HSBC). I want to do a DIL with HSBC. Would they agree to do a DIL because my second mortgage is with their subsidiary HFC? |
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jenkin7
Joined: 04 Jun 2007
Posts: 4537
Location: Hawaii
728.43 Dollars($)
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Post subject: |
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Hello Kathy,
Lenders generally do not agree to accept a deed in lieu if there is a second mortgage on the property. But you may talk to your lender and see if they are willing to accept.
Are you facing a foreclosure? |
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Lois
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Post subject: PMI insurance |
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| I have PMI and I'm having difficulty making my payments due to disability....will the PMI help? I also have a HELOC |
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larry
Joined: 27 Jun 2007
Posts: 3322
474.67 Dollars($)
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Post subject: |
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Hi Lois,
Welcome to the forum.
PMI will protect a lender against loss as you are not making payments. You have a HELOC also. I suppose you do not have PMI against HELOC. IS it not so? |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2645
Location: New Brunswick, New Jersey
488.43 Dollars($)
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Post subject: RE: pay off loan with PMI |
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It could have been better if you had applied for a mortgage disability insurance. PMI will no doubt help but for the first loan only. What are your plans? how do you wish to pay off the Heloc then? you can't keep it as it is. Or are you comfortable just paying off the Heloc?
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Find me at FB: http://www.facebook.com/people/Sara-Jones/100002976822020 |
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