own 5 homes, need exit plan

Guest 0.10 Dollars($)

I will run a lengthy scenario by you. I can not afford all of my loans (I am short approx $4000 monthly and have tapped my credit cards). I own 5 houses in Washington State. Two are rentals, one is for sale, those are ok. Heres where it gets tricky. Note: My credit taking a hit is not a concern, late payments already dropped it from 720 to 550.

20403 main residence. I can not afford. 1st Mtg 250k, HELOC 195k, might get 425k if sold. I want to get rid of this property. I have missed 2 payments on the 1st and 4 payments on the 2nd. What is my best option? I thought about contacting the 2nd regarding a short sale.

1713 rental. I bought it from owner via deed of trust, assuming the existing IRS lien on the home (lien is also on a lot behind the home, sold to my sister at same time). Lien is in the name of the prior owner.

When I refi'd 2 years ago, a title company said lien was gone. We then had the home sold 6 months ago, but my title company found the lien! We tried a short sale but lender said they did not consider it a short sale, that I got my money and should have paid the lien. I explained title said it was gone. They still said no. Title then confirmed it was a lender only policy, so we had no recourse. The IRS would not accept 50% payoff either. So sale fail. We rented it.

I want this home to go back to the lender so the IRS lien gets paid. I have missed 3 payments, assuming they will eventually foreclose, then when they resell it, IRS lien will be gone (and the lot behind it will be free and clear). Do I have any other option and am I right about the IRS lien getting paid?

12102 rental. Have a 1st and 2nd (80/20 when purchased). What will happen if I do not make 2nd mtg payments? Paid 335k, current value is 300k.

THANK YOU ALL!

jameshogg · Posted: Wed Sep 03, 2008 11:47 pm Post subject:

Hi,

Your query has been replied at http://www.mortgagefit.com/annoucements/about13490.html . Please have a look and then if you have further queries, feel free to ask.

Thanks

Guest 0.10 Dollars($)

was a brief response, did not answer other questions...and not sure its right, becasue if I do a deed in lieu, will there be a deficiency judgement from the HELOC?

helping_user · Posted: Sat Sep 06, 2008 12:46 am Post subject:

Hi,

I've just discussed on a similar issue at http://www.mortgagefit.com/problems/homeloans-shortsale-dil.html#59525 .

Thanks.

Guest 0.10 Dollars($)

Well, it was nice to get a quick response, as far as 20403, it seems that 2nd will not do a DIL (though they could recoup most of their money instead of getting zero if it goes to foreclosure), and neither can 1st because a 2nd exists, thus foreclosure is the only option.

But nobody addressed a couple of issues yet. Guess I will go talk to an attorney as nobody could take the time to be detailed on all the issues. Not such a great site after all.

Look at my post, there has been no response to 12102 and 1713 issues.

Jessica · Posted: Thu Sep 11, 2008 12:02 pm Post subject:

Well gloom and doom, I understand you're in trouble. But the forum here is an open platform wherein common people and experts from the mortgage and related industry address issues such as yours. I understand you have been waiting for a suggestion but I think some people came forward. However, I guess the participants have just missed out your feedback to the first reply .

As per your second query, you can go for a deed in lieu on the rental. And for the third query, if you don't make second mortgage payments, well, the lender may foreclose. You may consider doing a short sale on the 12102 rental.

The point is, you have 2 mortgages on his primary residence, 1 on the 1713 rental and another 2 on another rental. So, in total, you have 5 mortgages. I guess you're in mess and the best thing is to accept it and move on.

Regards,

Jessica.

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