Possible Foreclosure with 2 Mortgages?
Possible Foreclosure with 2 Mortgages?
Hello,
I bought a house in Feb 2007 for $104,500. (I have 2 mortgages, one for about $83,000 and the other for about $20,000). I didn't know much about buying a home and I think I may be a victim of mortgage fraud. At the time of purchase, my house was in need of repairs and assessed at about $53,000. I've tried to repair the house, but it is just too much for me financially (and I've even have a part-time job in addition to a good full-time job)…to the point that my credit is terrible. I'm thinking about letting it go into foreclosure, and since my credit is already bad I don't see it getting much worse. Is this the right way to handle this, or what good can come from pursuing a “mortgage fraud” case in court? Could my mortgage be erased/reversed? What happens with a foreclosure when there are 2 mortgages involved? What options do I have because I don't know what else to do and foreclosure seems to be my only option…
Please help!! I would greatly appreciate any advice that you would have to offer me.
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September 27th, 2009 at 4:33 am
September 27th, 2009 at 4:33 am
Secondly, to prove mortgage fraud would be quite difficult. You have to find an attorney who is well versed in TILA, HOEPA and RESPA and then all your loan documents would have to be examined to find any "errors".
Then if the court were to find in your favor you will be required to pay back the money you borrowed. Its a misconception that if you have a violation on the mortgage that you just get the mortgage wiped out – you don't. You will get a credit for all the interest you paid and any closing costs and most likely your attorney fees, but above that you have to write a check to the lender for the balance of what's owed.
If you are working 2 jobs and still not able to make the mortgage payments, then unfortuanely you bought too much house. Chalk it up to a mistake and just walk away. Bankruptcy may be a viable option especially if your state allows for Deficiency Judgments.
Mr Financial Freedom
http://www.5stepstofinancialfreedom.com
September 27th, 2009 at 4:33 am
Now , the handling of your personal situation is a different matter. Some people lose their house in 2008. By 2010 they are doing great. Life is wonderful. But that 2008 foreclosure means they will pay 22% interest when buying a car (even tho the sign says Zero % interest for qualified buyers). If we could know the future, we could know what to tell you.
The other wild card: If you knew that your house would be worth $250,000 in 2012, you would do anything to hold onto it. It is very possible that inflation could occur in the USA. Working 2 jobs, i have the feeling that you can hang on to this house.
September 27th, 2009 at 4:33 am