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DAGWOOD
Guest
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Post subject: BK AND 1ST AND 2ND |
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I HAVE FILED FOR BK OVER THREE YEARS AGO AND I AM STILL LIVING IN THE HOUSE 1ST IS ABOUT $147 K .2ND $48 K HOME WORTH IS $119 K .NEITHER ONE REPORT TO ANY CREDIT REPORTS .WHAT WILL HAPPEN IF I STOP PAYING SECOND ??
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jameshogg
Joined: 20 Dec 2005
Posts: 10477
Location: Nevada
990.06 Dollars($)
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Post subject: |
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Hi DAGWOOD,
Your loan has been discharged in your bankruptcy filing and you haven't reaffirmed the loan. Thus, the lender is not reporting this to the credit bureaus. If you stop paying the loans, the lender will foreclose the property and sell it off to recover his dues. |
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worriedinnj
Guest
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Post subject: 80/20% Mortgage Loans |
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When my ex-husband and I purchased our home in 2005 in New Jersey (maybe it was 2004) we received 80/20 mortgage loans. The home was foreclosed upon shortly thereafter. While the foreclosure took care of the 80% mortgage loan, I was left with the 20% mortgage. I have not made a payment since May 2006, and it will be 6 years since the last activity on the account in May 2012. In the meantime I have received letters from a debt collector. The last letter stated that it would settle for 20% of the $57k (this was the amount 20% loan). At this point it doesn't seem wise to make a payment.
My question is how likely is it that the debt collector will take me to court? I realize that I will not be liable for the loan after 6 months have passed, but I don't want to risk having my wages garnished. None of the letters have stated that the debt company has begun to take legal action against me. I understand that you cannot predict the future, but I am just wondering if I should truly be concerned. |
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adonis
Joined: 22 Oct 2005
Posts: 10562
Location: ALASKA
1089.18 Dollars($)
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Post subject: |
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Hi worriedinnj,
If the SOL period for the loan is over in your state, then your debt collector won't be able to take you to court or take any legal actions against you. However, if the SOL period is not over, then the debt collector will take you to court.
_________________
Procrastination is the enemy of your financial success |
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ron4450
Guest
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Post subject: va loan |
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| i have a va backed mortgage,if i stop paying what happens? how much time to i have before i have to leave |
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jameshogg
Joined: 20 Dec 2005
Posts: 10477
Location: Nevada
990.06 Dollars($)
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Post subject: |
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Hi ron,
If you stop paying the mortgage, then your property will be foreclosed by the lender in order to recover the debts. After the foreclosure sale is over, you will get an eviction notice which will mention the time period within which you'll have to leave the property.
Thanks |
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shreya212
Guest
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Post subject: default on second mortgage |
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| i am current on my 1st mortgage-----i cannot afford to pay my second mortgage. What are the consequences. i live in Florida. |
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adonis
Joined: 22 Oct 2005
Posts: 10562
Location: ALASKA
1089.18 Dollars($)
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Post subject: |
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Welcome shreya,
If you cannot pay off your second mortgage on time, the lender will charge off the loan and sell it off to a collection agency who will in turn contact you for the mortgage payments. Moreover, it will have a negative impact on your credit report.
_________________
Procrastination is the enemy of your financial success |
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moe
Guest
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Post subject: 2nd mortgage |
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| my 2nd sold to collection agent could they foreclose my house |
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jameshogg
Joined: 20 Dec 2005
Posts: 10477
Location: Nevada
990.06 Dollars($)
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Post subject: |
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Hi moe,
They can't foreclose your property unless they get a judgment from the court.
Thanks |
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billvanalstyne
Guest
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Post subject: Stop paying HELOC? |
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We are in New Mexico and own a home that we built in 2003-2004. Our first mortgage was refinanced a couple years ago through the federal Home Affordable program, so our current interest rate is 2%. I am unemployed except for unpredictable contract/consulting jobs, but I can continue making the 1st mortgage payment. Balance is 209k.
The 2nd mortgage (HELOC) balance is 116k. It is interest-only for a couple more years. Putting the two together, I owe 325k. Value of home on today's market is questionable, though the latest numbers show the NM market may have hit bottom and started to turn around. The home next door to ours (comparable) was listed for sale in December at 380k and was sold, but we don't know the actual closing price. We also will need to have our own home estimated for market value by a Realtor. My best guess right now is about 300-325k. We're working on getting the house fixed up a little before getting the Realtor estimate. So we are just barely underwater or at break-even. Unlikely that we're right-side-up.
If I stop paying the HELOC, they would obviously be able to pay off the 1st and make enough toward the debt on the second to make foreclosing on me worthwhile to them. Do you agree? I am current on both mortgages right now, but we've run out of money. Have to cut back somewhere. The payments on the HELOC are about 450 a month.
I'm thinking Ch 7 plus short sale of property (assuming value comes in where, or below where, I think it will) is probably the best bet, as we also have credit card debt. Then we're at zero and can start over somewhere else. I originally inquired about Ch 13 to strip off the HELOC and include it in the bankruptcy and keep the house. But our financial position with regard to the house makes stripping off the HELOC impossible, according to our bankruptcy adviser (will probably hire her as our attorney).
How does the statute of limitations play into this scenario, if at all? I don't know what it is in NM or what it applies to. |
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Jameson
Guest
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Post subject: collection of debt |
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all income is from following which I understand is exempt from garnishment,
VA disability, veteran pension, and Social Security
Can it be garnished thru my bank? |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 2708
Location: MICHIGAN
429.63 Dollars($)
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Post subject: |
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Hi billvanalstyne,
I did not understand what you exactly want to know about statute of limitations. Nevertheless, if you file Chapter 7, you will be able to get rid of all your debts, and will be able to start your financial life afresh.
Hi Jameson,
As far as I know, those income cannot be garnished through banks.
Thanks,
Jerry |
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anonymous23
Guest
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Post subject: 1st and 2nd mortgage |
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| Have a 1st and a 2nd mtg. Upside down. Foreclosure pending, cant pay secnd heloc and with AMERICAN HOME MORTG SERV (AHMIS), TERRIBLE COMPANY. Can I walk away from my 2nd? What would happen this is MO. |
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jameshogg
Joined: 20 Dec 2005
Posts: 10477
Location: Nevada
990.06 Dollars($)
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Post subject: |
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Hi Guest,
If you don't pay the second mortgage, then there are high chances that the lender will charge off the account and assign it to a collection agency who will in turn contact you and harass you for the payments.
Thanks |
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