Posted on: 10th Sep, 2009 10:40 pm
We are like so many that I've been reading on this forum. I have a 1st & 2nd, we owe $340k on a home that was currently appraised @ $153k (due to the many foreclosure/short-sales in our immediate area). I've called and emailed everyone from HUD, Freddie Mac, both Lendors, Attorney's and even TakeChargeAmerca and they all same the same. That I make 'just' enough that we won't qualify for any programs, no one will modify both loans and even had one person blurt out a sick laugh when they found out we reside in Maricopa County (greater Phoenix Area) because the market is so bad here. Within the 26 homes on our street, we've had 13 foreclose/short-sale. I stopped answering the phone, and explained to my spouse that I'm sorry the 'system' allowed us to get so far upside down and now we can't afford to stay here....it will be a matter of time before we're evicted. From what I've researched, Arizona had Anti-deficiency Laws on secured debt loans. Does anyone think that the 1st & 2nd Lendors will 'write off' all of the debt ($340k)? I've seen many with 2nd Mortgage questions/concerns and it appears that the lendor can write off the debt but that we'll be 'marked' like a BK person is for the next 7+ years. I just don't want to start over at a rental with our big family, living in fear of people constantly coming after us. Oh, and it gets worse, we now owe IRS $20k in back taxes from a few years ago. I feel like we don't have any other choices but to walk. I just pray both Lendors write it off and leave us alone to lick our wounds and live our lives. Comments welcomed. :cry:
Walking away from the property will lead to a foreclosure. As you have mentioned that most of the properties in your area are upside down, the foreclosure sale will not be able to recover both the dues. The first lender may forgive the deficient amount resulting from the sale, but the second lender can demand the whole amount from you. Moreover, it would be reported in your credit report as a negative amount and remain on it for the next 7 years.
Thank you Niicss. Yeah, I have talked to a Attorney but I guess I'll need to go back and talk to him again. We actually have been trying to sell our home for the last 2 years and our timing couldn't be worse. Then we tried to re-fi the 1st & 2nd and that couldn't happen because of the falling values. Then I tried doing a loan mod/make home affordable via our Lendor but they wouldn't take the 2nd Mortgage Lendor along for the ride (there is no program that includes the 2nd loan) but it didn't matter because they said I didn't qualify. Trust me, I don't want to walk away but it's like the house could/would be sold for 1/2 of what it's worth to "someone" else but they wouldn't do the same for me.
hi djisnoone!
welcome back to forums!
i can understand that things have been tough for you. but such things have become quite common with every other person due to the crash in the real estate market. you can speak to your first lender about a deed in lieu of foreclosure. in that case, your deficient amount resulting from the sale of the property would be definitely forgiven but you would be liable for the second mortgage dues. you can contact the second lender to negotiate a repayment plan with them. as far as your back taxes are concerned, you can contact the irs and they may help you with a repayment plan to pay off the taxes.
feel free to ask if you've further queries.
sussane
welcome back to forums!
i can understand that things have been tough for you. but such things have become quite common with every other person due to the crash in the real estate market. you can speak to your first lender about a deed in lieu of foreclosure. in that case, your deficient amount resulting from the sale of the property would be definitely forgiven but you would be liable for the second mortgage dues. you can contact the second lender to negotiate a repayment plan with them. as far as your back taxes are concerned, you can contact the irs and they may help you with a repayment plan to pay off the taxes.
feel free to ask if you've further queries.
sussane