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Ok, I need some help and not sure where to turn. We are in the middle of trying to get our house sold on a short sell. We paid $145 for it and now house is worth $125 so of course we lost $20,000 on house. The problem is we have had several offers on our house but so far the mortgage company is not wanting to cooperate. We have 2 mortgages because we had to do an 80/20. We had a foreclosure 5 yrs ago so you can see why we don't want another foreclosure. But, its almost like the mortgage company would rather see that happen then get our house sold. Last offer we had was for $127 which is more than house is worth. Bank of America is first mortgage holder and will I woudl think receive entire payoff so I am not sure why they can't negotiate. According to Remax, they can't find a negotiator. The 2nd mortgage is with Citifinancial and for some reason, they turned it over to collections knowign we were tyring to sell. We had to move out because mortgage co made us so. Can u help
State/Country relating to Question: Indiana Already Tried: We had to move out last Oct because mortgage company made us. I don't know why they keep acting like they are there to help when they are not. I would loved to have been able to keep my house but my husband hasn't worked in 9 months. However, we had to move out and live in a dump and I can't handle that anymore. It is too small and i am losing my mind but I feel like we are getting the run around. Also, is there a way we can find out if we paid too much money for it from the start. After we moved in, three other couples moved in after us and none of them paid what we did. If so, aren't there any repurcussions we can take because I shouldn't be penalalized because the house was appraised to high. I want to to be able to get into another house but with a foreclosure and a short sell, I don't think there is anything I can do. Plus, what if they foreclose when they have had plenty of offers? Isn't there something I can do? Sorry this is so long but I am really frustrated and feel like I am getting the run around from everyone including the realtor.
What state are you in?
I am in the state of Indiana. Does that help or do you still need any additional information? I am trying to be as detailed as possible
Hang on and I'll look at Indiana law as regards repossessions.
Thank you so much. I appreciate any help you can give me. As you can see, I am very frustrated because I feel like I am not getting much help from anybody. I am gettign the run around from the mortgage company and the real estate office. I woud think the 1st mortgage company would be thrilled to have their portion paid off so I really don't understand and am getting really frustrated! Thanks for listening to me vent! I really need it right now!
Good afternoon,
While I strive to give you an accurate and applicable answer to your question, and if I can possibly provide a legal avenue for you to have a successful legal outcome I will, I don’t have the ability to provide you with favorable law if it doesn't exist. As you read my answer to your question, I ask you to please don't shoot the messenger.
Unfortunately, indiana is not one of the states which mandates forgiveness of deficiencies when homes are foreclosed on.
As a resuly, you have no leverage in asking a lender to consider acccepting a short sale. And while your forst mortgage will be pretty much paid in full, your second lender will be out most of their money.
The amount of the appraisal has nothing to do with your contractual obligations I'm afraid.
If the bank forcloses and sells for less than the short sale offer you have, you may be able to use that as a defense to the lender obtaining a judgment on the full deficiency.
The problem you are having with a short sale is that both lenders have to agree to the short sale--not just the first lender. Usually the first lender must agree to give something of value to the second lender before they (2nd lender) will agree to release the lien and have the house sell on a short sale.
I wish you well.
Best regards,
Doug
But both lenders did agree to the short sale. So, do I have any other options? We have filled out paperwork indicating they will do a short sale with us. So, why would they not want to do a short sell when they are at least going to make some money. If they foreclose, I doubt the first mortgage will get remotely close to what we owe on it and the 2nd will get nothign. So, why wouldn't they try and take a little bit of money instead of ending up losing out on any kind of payment?
Good afternoon,If both lenders agreed to a short sale, then short sell the house.You do have another avenue and that is to file for Chapter 13 bankruptcy protection and potentially avoid the big deficiency judgment of the second mortgage.Right now the two lenders are fighting over what each of them will be getting. Tell them that if they don't allow the short sale in the next 15 days that you will file for bankruptcy. That will get the attention of the second lender.
I wish you and your family well.
Thank you very much for having allowed me to assist you. It would be greatly appreciated if you would click the green Accept icon so that I can receive credit for having assisted you.
That is what I am trying to do. I think the frustration is the 2nd mortgage is not really goign to get anything because of the appraised value coming in at so much less. I have been surprised really that they have offered so much for the house considering. But, I can't file bankruptcy so it sounds like I'm basically screwed right? What happens if I just tell them to go ahead and foreclose because I am tired of dealing with everything? The stress is getting to me so bad that i had to go to doctor and just can't deal with anything anymore. What about this loan modification program? Do you think that might be something I should check into to see if they can help me get back into the house so I don't have to have yet another foreclosure?
Good afternoon,If you can't file BK, then yes, you are as you say, screwed.You should just forget about the whole thing and let then do what thy are ultimately going to do. There is nothing to be gained by your continued involvement and trying to help the lenders--unless each of them are willing to allow a short sale and agree in writing NOT to seek a deficiency judgment. What might be the sanest course for you would be to wait until you can again file for Bankruptcy, and then do itThe loan modification programs will not likely help you at all. First, you are not even in the house anymore. And second, with your husband out of work 9 months, it is extremely doubtful that you could ever qualify.I wish you well.
Attorney
I am a practicing attorney with more than 27 years of experience in the legal field.
What was my deposit amount? I clicked on accept but couldn't remember what my payment was. Thank you for your help. I do appreciate everything you have done. So, I guess that is what I will do. Just tell them to take the house, let them put a judgement on me if they have to. Then file bankruptcy as soon as I can again. That seems to be my only option at this point. Which I thought that is what a short sell was. Where they just take what they can get and you are not responsible for the rest of the amount? Isn't that the way it is supposed to work? But, I can't keep continuing with dealing with all this stress so I have to do something. Thanks again for all your help. Unfortunatly, it wasn't what I wanted to hear but at least now I know what to do.
Good afternoon,Thank you kindly for your accept. I don't know what deposit amount you initially left. However, when you accepted, it appears to have deducted $38.00 from your deposit.I'm sorry that you are having to go through all of the mess with the apparent fighting between the two lenders--however, just realize that you have done all you can do and the problem is now in their laps.Best to you and yours,Doug
I think we might finally be getting something done. Amy with Remax is supposedly supposed to talk to the bosses today at both mortgage co but here is another question I just came across. Scott (the owner of Remax) told my husband that Obama has some kind of stimulus (government program) that says if there is not enough money to pay off both mortgages do to the appraisal being lower, they will step in and bail out that mortgage co. Does this make sense? I am not sure if my email is making sense right now. Can you shed some light on this one for me?
Thanks!
Good morning,Actually, I think that the majority of the rumors of all the many, many plans that Obama has to bail everybody out are a bunch of pipe dreams. I hear of a new plan every single day on here. By next week the govt. will be giving new homes to street people presently living out of cardboard boxes--if you believe all the rumors.The simple fact is, that in my opinion many people will not qualify for a bail out of any kind because their income has dropped so drastically since they initially got their loans.Not even the US govt. (Obama excluded) can be so arrogant as to believe that everybody is capable of being bailed out. When I actually see a single person helped by the trillion dollar folly that Obama has manipulated and conned his way to--and I don't mean the gift of hundreds of billions to the banks and insurance companies --then I'll be willing to reconsider the impact that this disaster our country is entering has on everyday people.I wish you well.
Well I can tell you are a major Bush fan, huh?? If you asked me, he screwed everything up and I wouldn't be in this position if he wasn't such an arrogant jerk. I mean really, how can you think he was so great and wonderful when he raised gas prices the way he did. If you ask me, he was the worst president out there. I know a lot of people are not big Obama fans but lets face facts, he has to come in and fix Bush's screw ups!!
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