countrywide second in a foreclosure (short sale, foreclosures, mortgage) - Phoenix area - Arizona (AZ) - City-Data Forum

KIMBER129 · 01-30-2009, 07:40 PM

If I am foreclosing on a home, and I have a second with Countrywide, a heloc, not purchase money second, what are the odds of them coming after me for the money? I got the second 3 years ago to do improvements on the house. What can they do to me? Has anyone else had this situation? I am willing to pay them, but they wont let me do it outside of foreclosure. Can they make me file BK? Can they sue me? Can they take money from my savings? I am in AZ. The first would not refi me since I am now upside down due to the market, and I am making less than I made when I purchased the home 5 years ago. What can I expect? Thanks.

Bummer · 01-30-2009, 09:25 PM

I'm a little confused, KIMBER . . .

If you have enough money in savings, why in the world would you even consider a foreclosure? Even if you are "upside down" you'll still need a place to live and this crappy market isn't going to last forever.

Sorry, but foreclosure would be my absolute final option.

Ponderosa · 01-31-2009, 05:36 AM

There is no way to tell if they will sue you or not. They will likely hound you with collection efforts forever. A lot depends on how big the deficit is and what they perceive to be their chances of recovery. If you have few assets or protected assets and no job then it is likely you would go bankrupt on them making the judgment noncollectable. So they aren't going to go to the effort and expense of a suit.

They are not going to "force" you into bk. You may want to consider that after your foreclosure if you have a large number of unsecured debts - credit cards and the like (and now the HELOC) that you want to restructure (CH13) or eliminate (CH7).

Captain Bill · 01-31-2009, 08:50 AM

Arizona is a non-recourse state. If the mortgage money is used for the house then they can't come after you. If it was used to buy a car and other non-house items, then they could. However, it is unlikely that they will come after you.

Most of the foreclosures today have seconds, and I haven't heard of any companies trying to go after the owner. Probably because it's too difficult to prove the money was not used for the house.

During the first three months of not making the mortgage payments, they will harass you to try and collect. After that 90 days they will file the Notice of Trustee Sale and schedule the foreclosure sale 90 days from then. At that point they must stop the collection calls.

You should attempt to sell the house in a short sale situation. If it gets sold, then your credit will not be hit as hard as if it goes to foreclosure.

If you stay in the house and keep it presentable, and if you and the realtor price it right, then it has a better chance of getting sold.

ivanabacowboy · 01-31-2009, 10:46 AM

Why are there so many posts like this lately? "I voluntarily borrowed this money and want to know if they can come after my savings and get it back"..... THEY SHOULD.

THIS IS WHAT THE HUGE PART OF THE ECONOMIC PROBLEM IS. Folks are just skipping on their debts like there is no tomorrow, then screaming because we are then having to bail out the banks who gave them the money which they didnt repay in the first place.

shiphead · 01-31-2009, 11:00 AM

Yes, this is one of the problems, but why would a lender recommend an adjustable rate? The OP also noted the lack of income.

With all these problems, i keep telling my wife, we will never buy a house unless we can pay 75% of it and with the economy fixing housing prices back to reality, my ideal can become a reality and not have to be filthy rich to buy a house.

AZgarden · 01-31-2009, 05:20 PM

Ivana: Stuff happens. A kid could come down with a life threatening illness and medical bills become overwhelming. Or a parent gets cancer and can't work anymore. Or someone steals your identity and you can't get it back without paying an arm and a leg. Or you lose control of your car and hit someone who sues you. There are SOOO many scenarios. Its not always just deadbeats who skip out on their loan and house. Have some compassion for the human race.

ivanabacowboy · 01-31-2009, 05:47 PM

PhxBarb: I understand those type of situations, and of course I have every compassion. (Except the you lose control of your car and someone sues you thing-that is sort of self-inflicted, and folks should also carry insurancce.) However, not every person trying to avoid a mortgage debt is in one of those situations. Folks need to take responsibility when they can is all I am saying.

KIMBER129 · 02-01-2009, 09:58 PM

Quote:

Originally Posted by ivanabacowboy

PhxBarb: I understand those type of situations, and of course I have every compassion. (Except the you lose control of your car and someone sues you thing-that is sort of self-inflicted, and folks should also carry insurancce.) However, not every person trying to avoid a mortgage debt is in one of those situations. Folks need to take responsibility when they can is all I am saying.

Well, since you DONT know my situation, you should not have commented~

Bummer · 02-01-2009, 10:13 PM

Quote:

Originally Posted by ivanabacowboy

Why are there so many posts like this lately? "I voluntarily borrowed this money and want to know if they can come after my savings and get it back"..... THEY SHOULD.

THIS IS WHAT THE HUGE PART OF THE ECONOMIC PROBLEM IS. Folks are just skipping on their debts like there is no tomorrow, then screaming because we are then having to bail out the banks who gave them the money which they didnt repay in the first place.

AMEN, Ivana . . . BEAUTIFULLY STATED.

Definitely there are exceptions to most every rule, however, nowadays there are far too many individuals refusing to take responsibility for their commitments mainly because their property has lost value. This would be a no topic if the property had appreciated . . . HOW CONVENIENT.