ARIZONA FORECLOSURE

Posted by CC on October 26, 2002 at 23:46:38:

I live in AZ. I own a house with a "wrap" mortgage, with an underlying loan with a bank, and the seller carrying the balance. Payments are made to an escrow company where my payment is disbursed to the bank, then the seller, taxes, association fees, etc.

There is also a second mortgage on the house -- to a private lender, not a bank. The second mortgage is current, I am about 30 days late on the first mortgage.

I recently lost my job and won't be started my new one until the first of December, and then for the first couple of months won't be making enough to pay for the house.

I don't want to keep the house, as it will be too expensive on my new pay.

The amount of the mortgages is approximately what the house is worth -- within a few thousand one way or the other.

My question is: Can I quit claim the house to the first mortgage holder? What happens to the second mortgage -- do I still owe them money?

Also, if anyone can come up with alternatives I'd appreciate it. Thanks.

Follow Ups:

• Dealing with hard money junior lienors. (url) - Ward-CA- 01:04:14 10/27/02 (1)
  • Re: Dealing with hard money junior lienors. - CC 08:48:19 10/27/02 (0)

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Comments:
: I live in AZ.  I own a house with a "wrap" mortgage, with an underlying loan with a bank, and the seller carrying the balance.  Payments are made to an escrow company where my payment is disbursed to the bank, then the seller, taxes, association fees, etc.

: There is also a second mortgage on the house -- to a private lender, not a bank.  The second mortgage is current, I am about 30 days late on the first mortgage.

: I recently lost my job and won't be started my new one until the first of December, and then for the first couple of months won't be making enough to pay for the house.

: I don't want to keep the house, as it will be too expensive on my new pay.  

: The amount of the mortgages is approximately what the house is worth -- within a few thousand one way or the other.

: My question is:  Can I quit claim the house to the first mortgage holder?  What happens to the second mortgage -- do I still owe them money?

: Also, if anyone can come up with alternatives I'd appreciate it.  Thanks.


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