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Need some Clarfication PLEASE...

Posted on: 21st Aug, 2008 12:39 pm
Need some objective advise please....

Current home in foreclosure - short sale extension to 9/13/08. We owe $158K on 1st mortgage and about $26K on HELOC. House has recently appraised for $117K.

I've been told different stories btwn my mortgage company, home equity line bank and the realtor as to what can potentially happen after 9/13... I need some clarification please.

My mortgage company has given me an extension to sell by 9/13 after that I will need to sign a DIL BUT must have letter of approval to do so by HELOC bank. I called my bank with the HELOC loan, told them what the mortgage company was offering ($1750) and she told me they would absolutely NEVER agree to that - they'd rather take nothing. She also told me they would then come after my hubby and I for repayment of that loan, is that true? And, if they refuse to sign off on the lien what can the 1st mortgage company do?? My realtor says the HELOC bank is full of it and that their trying to scare me into working out a repayment plan....

If someone could please let me know what to expect REALISTICALLY I would greatly appreciate it... just trying to see who is telling me the truth and who is blowing smoke ya know?!?

PS - honestly not sure if house will short sale or not at this point.

Thanks!
Mike - are you out there??? You emailed me but then I never heard back from you... what type of representation do I need?? I've not heard that before.
Posted on: 26th Sep, 2008 06:53 am
How or where do you look on your loan doc's to find the "resource or non resource "on the loan doc's? The only thing I found was "beneficary shall further be entiled to exercise the rights of a secured party under the Uniform commercial code as then in effect in the state of California"This is on the second loan " equity plus" what happen after it went to foreclosed.
Can this 2nd loan go after me for defiency judgement? What can I do?
please help... Thanks!
Posted on: 26th Sep, 2008 09:24 pm
Hi Sari!

In California, laws allow a lender to choose judicial foreclosure but lenders only do so if a borrower has significant other assets. This helps the lender to pursue a non-judicial foreclosure, at lower cost and less time, or judicial foreclosure that costs more money and takes more time. However it lets them go after you for their financial losses. So chances are that your lender will ask you to pay the deficiency.
Posted on: 27th Sep, 2008 02:04 am
Hi Aimzube, were you able to negotiate with Charter One? I am facing a similar situation where BAC is willing to do a DIL but after I get the second lien released from Chrter One. I am in Illinois.
Posted on: 26th Aug, 2009 04:15 pm
hi tara,

though you go for a deed in lieu of foreclosure with your first loan, you would still be responsible for paying off the second mortgage dues. so, it's quite surprising to me that your first lender wants you get the second lien released from the lender.

thanks
Posted on: 26th Aug, 2009 09:27 pm
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