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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 40669
Experience:  Texas Attorney for 30 years dealing in real estate
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I have a house with 2 mortgages. Ran into financial

Customer Question

Hi,I have a house with 2 mortgages. Ran into financial hardships years ago and had stopped paying the second mortgage while trying to refinance the 1st. Now the 2nd mortgage wants to foreclose. I offered a settlement amount of what I could afford and they came back asking for much more. I sent another settlement offer increasing the amount (but by not that much--- I have no money and would be borrowing!) they came back again with a much much higher price. I am sensing they have no interest in settling so I asked them for a pay off amount in case the house should have to list for sale. Again the second mortgage came back with another much higher amount. Currently my home is worth 190k the second mortgage wants the loan PLUS interests to be paid. This will not be possible if I cannot find a buyer for that. The buyer would have to want to pay 50k more than the appraise value. I just don't see that happening. What are my options? Is it better to just walk away?Thank you for your help.
Submitted: 12 days ago.
Category: Real Estate Law
Expert:  Ray replied 12 days ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

Customer: replied 12 days ago.
Hi Ray. Thank you so much.
Expert:  Ray replied 12 days ago.

I would say so here.See if they would agree to a deed in lieu.That give the title here but they do not seek a deficiency.This is a better option than straight foreclosure.But as you state here the numbers do not work, you either deed in lieu or let it go into foreclosure here.Stay until they kick you out here , you might get up to a year before they get done and evict you.Save your money it will give you a good amount of funds to relocate.Thats the bot***** *****ne here the lender is being ridiculous so see if they will take deed in lieu and move forward.

I appreciate the chance to help you tonight.Thanks again.

If you can positive rate 5 stars it is much appreciated.

Expert:  Ray replied 12 days ago.

I wish you the best here with deed in lieu.If you can positive rate 5 stars it is much aprpeciated.Have a great evening.

Customer: replied 12 days ago.
In a deed in lieu what does that mean?For example:
1st mortgage i owe 167k payoff
2nd mortgage is requesting 78k payoff which is more than the original amount of the loan itself.If appraisal says $190 then what dos that mean or how does the deed in Lieu work?
Expert:  Ray replied 12 days ago.

You would need a deed in lieu from both lenders here to make this work.And honestly that may be hard to get them to agree but otherwise you just let it go.Tellt hem you are considering Chapter 7 see if they agree then.It is worth a try.Otherwise the numbers her don't work it really is underwater from what you present and you may just have to walk away here.I know it s hard but options are real limited.In the long run you are better to give it up by deed in lieu or walk away here.

Customer: replied 12 days ago.
Thank you so much for your time. I'll look into this deed in lieu tommorow.
Expert:  Ray replied 12 days ago.

You are so welcome and thanks for rating 5 stars at top of page.

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