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  • Foreclosure advice needed

    Hi- I currently own a home in PA- and renting in FL where I now work.
    I have been trying to sell my PA home now since January and have come
    down from 169 to 139 with no offers (I originally bought at 145). I
    currently have a first mortgage of 120000 and second mortgage/line of
    credit at 43000 for a total of 163000.
    I believe I am in a situation now where I will have to foreclose (I
    cannot afford it anymore) and would appreciate any advice in this
    area- in particular:

    1. I have the opportunity to refinance everything at $168000 so it
    would just be 1 mortgage that I would then foreclose on. Is it better
    to foreclose with the 2 mortgages as I have it now- or just 1. In
    particular I am wondering what the chances are of a shortage/
    deficiency judgment and the liklihood that they will "come after me"
    for that amount. Is it more likely with the scond mortgage- or even
    with the refinanced?


    I have to make this decision in the next couple of days so would
    really appreciate any advice in this area.

    Thanks,
    Jim

  • #2
    Foreclosure advice needed

    In article <[email protected] >, Jim
    <[email protected]> wrote:
    Hi- I currently own a home in PA- and renting in FL where I now work. I have been trying to sell my PA home now since January and have come down from 169 to 139 with no offers (I originally bought at 145). I currently have a first mortgage of 120000 and second mortgage/line of credit at 43000 for a total of 163000. I believe I am in a situation now where I will have to foreclose (I cannot afford it anymore) and would appreciate any advice in this area- in particular: 1. I have the opportunity to refinance everything at $168000 so it would just be 1 mortgage that I would then foreclose on. Is it better to foreclose with the 2 mortgages as I have it now- or just 1. In particular I am wondering what the chances are of a shortage/ deficiency judgment and the liklihood that they will "come after me" for that amount. Is it more likely with the scond mortgage- or even with the refinanced?
    Me thinks:

    i) doing a re-fi seems silly since you would end up paying a
    bunch of closing fees and loan origination fees and not having
    any of this help you.

    ii) in the event that you do keep this property, interest rates
    are moving up right now, so it doesn't seem like a good time to
    re-fi, especially since you will likely get a high rate due to
    having a high risk credit situation.

    iii) yes, they will come after you if they do not sell the home
    at a price that will cover the loan plus costs.

    iv) the lender has no incentive to get a good price for the house.
    They might end up selling it for far less than what you would sell
    it for, and you would end up having to make up $30K or $40 rather
    than just a few thousand if you sell it for yourself.

    v) if the market is soft, perhaps you are going to have to sit
    on this for a while. Perhaps you can rent it out?

    vi) even if you do get an offer at $139K right now, how would you
    close the deal? Unless you have the cash to pay off the mortgages,
    you cannot sell for less than what you owe.

    -john-

    --
    ================================================== ==================
    John A. Weeks III 952-432-2708 [email protected]
    Newave Communications http://www.johnweeks.com
    ================================================== ==================

    Comment


    • #3
      Foreclosure advice needed

      Have you considered hiring a real estate firm (many handle rentals) or a
      trusted friend or family member in the area and rent the house out for now?
      Until the market improves or it appreciates further it might give you a
      chance to keep up. You can also refi it as a rental property.

      -Shell

      "Jim" <[email protected]> wrote in message
      news:[email protected] om...
      Hi- I currently own a home in PA- and renting in FL where I now work. I have been trying to sell my PA home now since January and have come down from 169 to 139 with no offers (I originally bought at 145). I currently have a first mortgage of 120000 and second mortgage/line of credit at 43000 for a total of 163000. I believe I am in a situation now where I will have to foreclose (I cannot afford it anymore) and would appreciate any advice in this area- in particular: 1. I have the opportunity to refinance everything at $168000 so it would just be 1 mortgage that I would then foreclose on. Is it better to foreclose with the 2 mortgages as I have it now- or just 1. In particular I am wondering what the chances are of a shortage/ deficiency judgment and the liklihood that they will "come after me" for that amount. Is it more likely with the scond mortgage- or even with the refinanced? I have to make this decision in the next couple of days so would really appreciate any advice in this area. Thanks, Jim

      Comment


      • #4
        Foreclosure advice needed

        Actually I could come up with the $ at 139.
        I do not want to rent it as soon they will be placing running water
        (now well) nearby which will necessitate spending 5000+ on it. I also
        would like to just sever all ties with the property now.
        I was just under the impression if there is a defivency in the sale of
        a foreclosure the bank usually woudl not go after it- whereas a
        seconnd mortgage might. That is why I thought of refinancing both into
        1 mortgage so as if the forclosure becomes necessary there would be
        less liklihood of them seeking a deficiency judgment- but I am not
        very knowledgable on this and would like to know if others have found
        that to be true or not.

        Thanks for all the comments,

        Jim



        "John A. Weeks III" <[email protected]> wrote in message news:<310520041536163458%[email protected]>...
        In article <[email protected] >, Jim <[email protected]> wrote:
        Hi- I currently own a home in PA- and renting in FL where I now work. I have been trying to sell my PA home now since January and have come down from 169 to 139 with no offers (I originally bought at 145). I currently have a first mortgage of 120000 and second mortgage/line of credit at 43000 for a total of 163000. I believe I am in a situation now where I will have to foreclose (I cannot afford it anymore) and would appreciate any advice in this area- in particular: 1. I have the opportunity to refinance everything at $168000 so it would just be 1 mortgage that I would then foreclose on. Is it better to foreclose with the 2 mortgages as I have it now- or just 1. In particular I am wondering what the chances are of a shortage/ deficiency judgment and the liklihood that they will "come after me" for that amount. Is it more likely with the scond mortgage- or even with the refinanced?
        Me thinks: i) doing a re-fi seems silly since you would end up paying a bunch of closing fees and loan origination fees and not having any of this help you. ii) in the event that you do keep this property, interest rates are moving up right now, so it doesn't seem like a good time to re-fi, especially since you will likely get a high rate due to having a high risk credit situation. iii) yes, they will come after you if they do not sell the home at a price that will cover the loan plus costs. iv) the lender has no incentive to get a good price for the house. They might end up selling it for far less than what you would sell it for, and you would end up having to make up $30K or $40 rather than just a few thousand if you sell it for yourself. v) if the market is soft, perhaps you are going to have to sit on this for a while. Perhaps you can rent it out? vi) even if you do get an offer at $139K right now, how would you close the deal? Unless you have the cash to pay off the mortgages, you cannot sell for less than what you owe. -john-

        Comment


        • #5
          Foreclosure advice needed

          Any chance you would be willing to post the town or area where the property
          is located? I am in South Jersey, so if the property is in Southeastern PA,
          I might be interested in it as an investment -- maybe some type of "mortgage
          takeover" deal. Is it listed with a realtor?

          "Jim" <[email protected]> wrote in message
          news:[email protected] om...
          Hi- I currently own a home in PA- and renting in FL where I now work. I have been trying to sell my PA home now since January and have come down from 169 to 139 with no offers (I originally bought at 145). I currently have a first mortgage of 120000 and second mortgage/line of credit at 43000 for a total of 163000. I believe I am in a situation now where I will have to foreclose (I cannot afford it anymore) and would appreciate any advice in this area- in particular: 1. I have the opportunity to refinance everything at $168000 so it would just be 1 mortgage that I would then foreclose on. Is it better to foreclose with the 2 mortgages as I have it now- or just 1. In particular I am wondering what the chances are of a shortage/ deficiency judgment and the liklihood that they will "come after me" for that amount. Is it more likely with the scond mortgage- or even with the refinanced? I have to make this decision in the next couple of days so would really appreciate any advice in this area. Thanks, Jim

          Comment


          • #6
            Foreclosure advice needed

            The property is actually in SW PA - in Butler county (right over the
            line of Allegheny)- about 30 min. commute from Pittsburgh (which I did
            every day). The house itself is very nice. If interested write my
            email and I can give the exact address.

            Thanks,
            Jim



            "Ron26" <[email protected]> wrote in message news:<[email protected]>...
            Any chance you would be willing to post the town or area where the property is located? I am in South Jersey, so if the property is in Southeastern PA, I might be interested in it as an investment -- maybe some type of "mortgage takeover" deal. Is it listed with a realtor? "Jim" <[email protected]> wrote in message news:[email protected] om...
            Hi- I currently own a home in PA- and renting in FL where I now work. I have been trying to sell my PA home now since January and have come down from 169 to 139 with no offers (I originally bought at 145). I currently have a first mortgage of 120000 and second mortgage/line of credit at 43000 for a total of 163000. I believe I am in a situation now where I will have to foreclose (I cannot afford it anymore) and would appreciate any advice in this area- in particular: 1. I have the opportunity to refinance everything at $168000 so it would just be 1 mortgage that I would then foreclose on. Is it better to foreclose with the 2 mortgages as I have it now- or just 1. In particular I am wondering what the chances are of a shortage/ deficiency judgment and the liklihood that they will "come after me" for that amount. Is it more likely with the scond mortgage- or even with the refinanced? I have to make this decision in the next couple of days so would really appreciate any advice in this area. Thanks, Jim

            Comment


            • #7
              Foreclosure advice needed

              Thanks for posting the general location. That would be too far away from
              where I am located so it wouldn't make sense for me. If it were closer, I
              would write and see if there was something we could work out.

              I just noticed that your message is cross-posted on misc.invest.real-estate
              (I saw it on alt.bankruptcy), so maybe someone there will be from the SW
              Pennsylvania area and have an interest.

              If you don't find a buyer, you might want to think about doing a
              rent-with-option-to-buy or some other plan that would allow someone to buy
              your place at your price but their terms. I have a friend who does that
              with investment properties that he owns. His experience has been that
              people who do the rent/option approach tend to take care of the property and
              sometimes are people who want to be homeowners but do not yet qualify to buy
              a home. In your case, it might be a way to get someone into your property
              to cover the mortgages and who might end up becoming a buyer at a later
              date. Of course, being 1,000 miles away from the property is a big
              disadvantage.

              "Jim" <[email protected]> wrote in message
              news:[email protected] om...
              The property is actually in SW PA - in Butler county (right over the line of Allegheny)- about 30 min. commute from Pittsburgh (which I did every day). The house itself is very nice. If interested write my email and I can give the exact address. Thanks, Jim

              Comment

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