Real Estate Law
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Thank you for your prompt response. Will my wife still be held accountable after the divorce vs the separation status now? What about a Novation to get her off the current loan before I walk away? I could use the divorce as the excuse to do that when asking Wells Fargo? Or is refinance the ONLY option here to get her off the loan?
And you re correct, there are no second loans or equity loans.
I received a letter from a company called Activus (Irvine, CA) and then visited them to discuss their offer to help me "restructure" my current condo loan. I owe $460k and the assessed value is $430k or likely less. They said that there are a variety of government mandates that require banks to restructure upside down loans, where proper paperwork is provided to a group of attorneys they work with and the attorneys submit to the bank holding the loan to restructure the loan such that the new loan balance will be the assessed value and then that value is reset to a 2% or 3% interest. So, for my situation, my new monthly mortgage payment would drop from $2700 to about $1300 per mo. And that the average person can not know the correct way to get banks to abide by the government rules. I would pay the attorney group $2300 for them to get the bank to restructure. Are you aware of such a process? Or are there specific l questions I should ask to see if this service is legitamit? In my meeting with them it seemed up and up. The banks are mandated to comply per the bail out money given to them, and where the banks have been intentionally holding this money form the average public person. Please let me know your thoughts. Thanks Jim
I now have a similar question about walking away from a property. You previously mentioned that if I walk away from a CA property, there is no recourse for the bank to go after my other assets. I live in CA and perhaps that is part of the reason for this? I have a condo I rent in Memphis, TN and this property is also not increasing in value and has also declined. I will try to sell this asap, but if that is not possibe, I will consider walking away from this TN property.Would this situation be the same as walkiing away from the CA property? That is, would the bank be able to go after my personal assets? I currently have renters in this property. Would I need to give them notice that I am walking away? How much notice? Does the renter have any legal recourse? Also, in general, how do I handle my property tax and HOA obligations when walking away? Thanks again. Jim
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