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TalontedTSi

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Post Posted: Tue Nov 04, 2008 7:22 pm    Post subject: Looking for advice/answers
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Hi, I came across this site by google and in desperate need of some answers/advice.
I am currently in the process of selling my house which is selling for 440K. We have a lawyer who will be closing the deal and a real estate agent, of course. After all the expenses and whatnot, lets say the balance is left to 400K.

We have a mortgage loan that has a total balance of 195K and a home equity loan that is attached to the mortgage(235K) which me and my dad did not know about since my mother was the one handling all the financial things. She recently passed away. So as of right now, the balance due to the lenders is 195K plus 235K which is 430K owed. They said once the house sells we owe them the amount which is 430K.

The question I am asking is, what are my options? What can I do? We have other mortgages and bills to pay and will not be profiting the money we receive from the house we sell. Is there a way to pay some of the amount owed? Can we combine the loan and refinance? I don't know what to do. Basically, they are saying the money we will be receiving goes to them. Is there anything I can do?

I am in need of help and answers. I am sorry for any unclear information. If any other information is needed to help assist me, please ask me. Thanks in advance.

-Andrew
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Icon Mini Profile smithsussane
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Post Posted: Tue Nov 04, 2008 7:34 pm    Post subject:
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Hi TalontedTSi!

Welcome to forums!

If you owe money to the lenders, you will have to pay it to them. If you do not pay them the dues, they may place liens on your other properties or can even garnish your wages. You can speak to the lender about the refinance option. It depends on the lender whether he can offer you with refinance. Or else you can take a refinance from any other lender in the market. You can also try for a loan modification if possible. Here the lender will give you a repayment plan with easier terms and conditions.

Feel free to ask if you have further queries.

Sussane
TalontedTSi

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Post Posted: Tue Nov 04, 2008 7:41 pm    Post subject:
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I am just confused on what I should do. If they take the full amount of 430K we would have no money to pay other mortgages that we have. Your saying that I should speak to them and see what kind of options they give me? Maybe I could pay the 195K debt and keep the rest of the funds and just continue paying the equity loan of 235K? Is that possible? I am trying to at least keep some funds so we can continue to pay other bills.
Icon Mini Profile jerry
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Post Posted: Wed Nov 05, 2008 1:45 am    Post subject:
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Hi TalontedTSi!

I don't think that will be possible. As soon as you sell the property both the lenders will ask you to pay off the debts. I don't think you will be able to keep funds for paying other bills. In my opinion, you can talk to the lender about loan modification. You will get a alternative repayment plan which will help you to pay off the loan.

Thanks,

Jerry
Icon Mini Profile gmakerley
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Post Posted: Wed Nov 05, 2008 2:52 pm    Post subject:
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forget about refinancing...that was inappropriate advice.

what you need to do is to negotiate with the secondary lender (home equity) and explain that you'll not be able to pay off the debt with the sale of the home, and seek a short sale.

they will probably need specific information that verifies your value of $440000 and the exisiting balances, etc. and they will have to approve your request for short sale in order for the sale to go through.

engage the assistance of your agent and your lawyer to assure yourself that you'll be able to do this transaction. you need to be in contact with the lender right away.
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TalontedTSi

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Post Posted: Wed Nov 05, 2008 5:16 pm    Post subject:
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Thanks for the responses. George, I guess there is no other way to handle this situation right? So, I will speak to the lender about the short sale. I wish there was another outcome to this but okay. Thanks for all the responses, greatly appreciated.

-Andrew
Icon Mini Profile smithsussane
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Post Posted: Wed Nov 05, 2008 7:53 pm    Post subject:
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Hi TalontedTSi!

Welcome back to the forums!

I hope that the lender will agree to a short sale. Do let the forum members know about your talk with the lender. If you have further queries, you can post it in the forums and the members here will try to answer it. Thanks.

Sussane
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