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Advise Needed

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astridwasserman Joined: 20 Nov 2009 Posts: 2 1.28 Dollars($)	Posted: Fri Nov 20, 2009 2:26 pm    Post subject: Advise Needed Like 0 Dislike 0 I have 3 loans against my home Citimortage 1st $415K Citibank Equity Line/loan second mortage $270K Citibank Equity Line $45K Made an investment with a broker that totally screwed me (thereof the second) and I have now lost that investment and that is why I cannot pay anymore. I also have lost my job. Citimortage is offering me a 3 month forebearance plan which I am taking, however they are not telling me really much about the other 2 loans even though they are with Citibank as well. I understand that if I do not pay the second and the equity line they will be charged off and then given to collection agency? So, next month they will be calling me when I cannot pay anymore. After 3 months when I put the house up for short sale, is only the first mortgage being paid off or will the left over monies be applied automatically to the other 2 loans? should I ask for a short sale or deed in liue? How can I navigate this the best way? Do I have any say in the proceeds of a short sale? Who can I contact who will know what to advise me! TX
smithsussane Joined: 18 Sep 2008 Posts: 10030 Location: Alaska 919.49 Dollars($)	Posted: Fri Nov 20, 2009 7:42 pm    Post subject: Like 0 Dislike 0 Hi astridwasserman! Welcome to forums! If you do not pay the other 2 loans, the lender has the right to send them to collections. I would suggest you to contact your lender and check out whether or not he would offer a forbearance on the other two loans. Whether you go for a short sale or a deed in lieu of foreclosure, your first mortgage would be paid off first. If there is any excess amount, that would be used to pay off the other two loans. However, if there is no excess amount to apply towards the other two loans, then you'll be responsible to pay them off. Feel free to ask if you've further queries. Sussane
astridwasserman Guest	Posted: Mon Nov 23, 2009 9:42 am    Post subject: Short Sale Like 0 Dislike 0 Hello Sussane, tx for your reply. Now Ive change my mind, there is no use stretching out the time with a forbearance in my case since I will never be able to keep paying and live in the house myself anymore. You do not get good jobs after 60. So now it's deed in liue or short sale and to try not to owe money to the bank.......what is the safest, and how to I protect the only other house that I own from going after that one too...... tx
smithsussane Joined: 18 Sep 2008 Posts: 10030 Location: Alaska 919.49 Dollars($)	Posted: Mon Nov 23, 2009 9:41 pm    Post subject: Like 0 Dislike 0 Hi astridwasserman! Welcome back to forums! As you do not want to owe money back to the bank, then you can go for deed in lieu of foreclosure. You'll have to surrender the property to the lender who would sell it off in an auction. If there's a deficient amount resulting from the sale, then you won't be responsible for paying it off. However, your credit score would go down by around 250 points. Alternatively, in a short sale, you would be responsible for paying off the deficient amount but your credit score would go down by only 80-100 points. Feel free to ask if you've further queries. Sussane

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