Foreclosure On 2nd
Scenario-am holding 2nd for $15,800.00-4 payments past due; in Chapter 13- have filed stay so foreclosure can go forward; current owner assumed VA loan from me; is current on 1st. Wants me to take back property. Property has recorded lien for 13K for medical & 5k for child support; remainder due on 1st is $39,800.00 ; assessed at $83,000.00.Med w/not compromise-I want property but expect bidding war. Upon foreclosure, liens wiped out or am I in error?
Prefer to get property prior foreclosure but will be stuck w/liens; owner to convert to 7; trustee will not allow anymore Ch 13 dismissals. Any options other than taking chance on courthouse steps? Would like to re-assume my VA mtg but I would end up with liens. Any suggestions-in Virginia
Tokie
I would suggest that you check with the VA on this. You may still be responsible for this mortgage. As you stated this person "assumed" the mortgage which means that you are still the main person responsible for the mortgage note. He is only assuming your balance and the mortgage companies I have dealt with will come after the originator of the note.
VA has a program called Refunding. Where they will pay off the balance owed the mortgage company including all outstanding legal fees, late fees, etc. and start this over as a conventional mortgage.
Negotiate the lien holders down on the amounts they have against the property. They will usually settle for pennies on the dollar rather than lose out entirely on a foreclosure.
Get the current owner who assumed the mortgage to sign a confessed judgement note to you for the amount of his debt that you would assume and have him pay you on a monthly basis.
Hope this helps.
Barbara
Quote:
On 2004-02-20 09:48, PassingThru wrote:
I would suggest that you check with the VA on this. You may still be responsible for this mortgage. As you stated this person "assumed" the mortgage which means that you are still the main person responsible for the mortgage note. He is only assuming your balance and the mortgage companies I have dealt with will come after the originator of the note.
VA has a program called Refunding. Where they will pay off the balance owed the mortgage company including all outstanding legal fees, late fees, etc. and start this over as a conventional mortgage.
Negotiate the lien holders down on the amounts they have against the property. They will usually settle for pennies on the dollar rather than lose out entirely on a foreclosure.
Get the current owner who assumed the mortgage to sign a confessed judgement note to you for the amount of his debt that you would assume and have him pay you on a monthly basis.
Hope this helps.
Barbara
Good advice!
I would expect the mdecial folks, etc to discount when they recognize that they are about to be wiped out. You would need to take steps to start the process so the medical folks understand that being wiped out is a very real possibility.
John
Why should VA have any interest or offer any relief at all in the 2nd mortgage? The first mortgage is in tact, right? Or did I miss something.
Keep the ball rolling here as this is an interesting topic.
Barbara - how long have you been a foreclosure consultant? You sound like you really know your stuff.
C-