Answers (3)
- John Conklin, "203K Alternative"
- Contributions:142
I would consider a short sale before you walk. The impact on your credit and waiting period to buy after the short sale is complete is a lot less than a foreclosure. I would strongly advise speaking with a real estate attorney before you make a final decision. If you would like a recommendation of a real estate attorney please feel free to contact me.
- Chris Morrison, "Chris Morrison"
- Contributions:3027
Please read: "The Mortgage Forgiveness Debt Relief Act and Debt Cancellation" http://www.irs.gov/individuals/article/0,,id=179414,00.html
This will explain an important deadline that's coming up at the end of this year.
In my experience most home equity lines of credit are recourse debt. (meaning they can come after you) The only real exception is if the home equity line of credit was used as a "purchase money mortgage." A good example of a purchase money mortgage is an 80/20 loan. 80% being the first mortgage and 20% being the home equity line of credit taken out at the time of purchase.
The best thing to do is to contact a good attorney that can explain whether your loans are recourse or non-recourse. Feel free to contact me and I can refer you to an excellent foreclosure attorney.
If you are experiencing any type of financial hardship you may be a good candidate for a short sale. This would benefit you by giving you a little bit more control and the ability to possibly negotiate down the amount of recourse debt. I'm a short sale specialist and would be happy to talk with you.
This will explain an important deadline that's coming up at the end of this year.
In my experience most home equity lines of credit are recourse debt. (meaning they can come after you) The only real exception is if the home equity line of credit was used as a "purchase money mortgage." A good example of a purchase money mortgage is an 80/20 loan. 80% being the first mortgage and 20% being the home equity line of credit taken out at the time of purchase.
The best thing to do is to contact a good attorney that can explain whether your loans are recourse or non-recourse. Feel free to contact me and I can refer you to an excellent foreclosure attorney.
If you are experiencing any type of financial hardship you may be a good candidate for a short sale. This would benefit you by giving you a little bit more control and the ability to possibly negotiate down the amount of recourse debt. I'm a short sale specialist and would be happy to talk with you.
- Jim Brown, "Jim Brown1"
- Contributions:11
Before you walk away you should consult with a real estate attorney that focuses on representing homeowners that are in loan default. You need to find out if that 2nd lien is non-recourse or recourse debt. If it's recourse debt the bank would have the right to sue you for their loss after foreclosure. With a 1 hour consultation, A knowledgeable Attorney will be able to educate you on your options which will allow you to make the best / informed decision.
Call or email me and I'd be happy to put you in touch with an excellent real estate attorney in Phoenix.
Call or email me and I'd be happy to put you in touch with an excellent real estate attorney in Phoenix.
I have a first and a second loan. The second is a HELC. I plan on walking away from the house. I liv
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