Re: 2nd property to foreclosure??? Please advise
Posted by OC Andy on September 18, 2007 at 21:29:21:
In Reply to: 2nd property to foreclosure??? Please advise
Posted by Stress Yourself on September 18, 2007 at 18:03:36:
Stress:
I'm reading in your first paragraph that you were not aware that there was a refi done on the house that you purchased? Major Issue! - Find out right away who the lender is for that refi and contact them immediately. Also request copies of all three of your credit reports and check them for unauthorized activity. Identity theft can ruin you financially in just a short time.
On the issue of your Condo, you may want to find out if your renter wants to buy - make them an attractive offer. Depending on how much market value you have lost, (did you get a 100% CLTV 2nd when you refied?) you will have to accept the fact that the Condo does not cash flow for you, it is a drain on your current financial resources, and you must take action immediately to keep this Condo from completely going through the foreclosure process. If a foreclosure is completed, it will ruin your credit for years t come.
Try the following things:
1. Find out if your renter wants to buy the Condo - they already live there and they like it enough to rent , maybe they will buy.
2. Contact your lenderf for the first and the second, explain the situation to them and find out if they would agree to a forebearance or a loan modification which could lower your payment for a while.
3. List the Condo for sale with a RE Agent as a short sale - there will be tax implications for doing so so check with your agent.
"...I will have pay the difference from my pocket even if it goes for foreclosure. Is that true?"
Foreclosure agents are not loan officers - ask a qualified loan officer this question before you consider a refi. Why would you want to refi and pay closing costs to save a couple hundred dollars a month on a loan that may be foreclosed on anyway?
A better approach may be to chalk this one up to experience and take the hit from the short sale and move on.
Follow Ups:
