Foreclosed but 2nd Mortgage Still Billing and Destroying My Credit?
A foreclosure in the State of: CA
I purchased my home in 2005 for $405,000, but a year subsequent transferred for employment purposes. After trying everything from working with a realtor, short sale companies, action in lieu, loan modification, etc., we could no longer afford the mortgage payments in a house we no longer lived contained by. We had a 80/20 that eventually ended up within the hands of Countrywide and SLS. In Feb. 2008, our home foreclosed and from what I understand, it be purchased by Countrywide for $270,000. My questions are:
1. Since they purchased it at a loss, my guess is they didn't share anything with SLS right? Is at hand a way to find this out?
2. SLS is still billing us over a year later. Can they do this since we no longer own the house?
3. My credit evaluation gets lower each month that they report me delinquent. I have a FICO of 777 when I purchased the house, and last I checked, it is in the mid 500s in a minute. (and keeps getting lower). Is there anything I can do to capture them to "write me off?" I don't have much income, but could they trimmings wages?
4. Is bankruptcy my only remedy? All of my other debts are paid off, (aside from 100K surrounded by my husband's student loans). So I'd like to avoid bankruptcy, and start rebuilding my credit. But it seem like each step I cart, the delinquent 2nd drives me 3 steps back.
Answers:
Sounds familiar - same situation I be in.
It's a sure bet Countrywide did not share anything with SLS. I assume you are not paying SLS anything right immediately. If you are, STOP paying them.
The best situation is if SLS has turned the loan over to a debt collector. Debt collectors are willing to negotiate lower principles = as much as 50% smaller number. You can arrange a lump sum payoff or monthly payment usually without interest.
The unprofessed is knowing that the debt collector purchased that debt for pennies on the dollar. Let's assume the amount is $20,000. SLS sells the loan to Debt Collector for $8,000. SLS writes off the $20,000 loan at $8,000, and get a tax break too. Anything Debt Collector gets above that amount is profit. These numbers are amazingly realistic.
You must take control when dealing near Debt Collector. Knowledge is power.
I agree with davidm
1.Pay the 2nd Mortgage back and start building your credit mark up or
2. File bankruptcy and then view your score hit bottom
Just because your collateral is gone does not let you of the hook for that second mortgage. You took the money from that second mortgage company next to the promise to pay it back. Now they expect you to take-home pay it back. Your credit record will not advance until you become current on this debt and bankruptcy certainly won't lend a hand to improve it. I hope the new errand was worth it. Learn from this. No more home equity loans or second mortgages. If you can't afford to buy something without taking such activities you can't afford the item.
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I purchased my home in 2005 for $405,000, but a year subsequent transferred for employment purposes. After trying everything from working with a realtor, short sale companies, action in lieu, loan modification, etc., we could no longer afford the mortgage payments in a house we no longer lived contained by. We had a 80/20 that eventually ended up within the hands of Countrywide and SLS. In Feb. 2008, our home foreclosed and from what I understand, it be purchased by Countrywide for $270,000. My questions are:
1. Since they purchased it at a loss, my guess is they didn't share anything with SLS right? Is at hand a way to find this out?
2. SLS is still billing us over a year later. Can they do this since we no longer own the house?
3. My credit evaluation gets lower each month that they report me delinquent. I have a FICO of 777 when I purchased the house, and last I checked, it is in the mid 500s in a minute. (and keeps getting lower). Is there anything I can do to capture them to "write me off?" I don't have much income, but could they trimmings wages?
4. Is bankruptcy my only remedy? All of my other debts are paid off, (aside from 100K surrounded by my husband's student loans). So I'd like to avoid bankruptcy, and start rebuilding my credit. But it seem like each step I cart, the delinquent 2nd drives me 3 steps back.
Answers:
Sounds familiar - same situation I be in.
It's a sure bet Countrywide did not share anything with SLS. I assume you are not paying SLS anything right immediately. If you are, STOP paying them.
The best situation is if SLS has turned the loan over to a debt collector. Debt collectors are willing to negotiate lower principles = as much as 50% smaller number. You can arrange a lump sum payoff or monthly payment usually without interest.
The unprofessed is knowing that the debt collector purchased that debt for pennies on the dollar. Let's assume the amount is $20,000. SLS sells the loan to Debt Collector for $8,000. SLS writes off the $20,000 loan at $8,000, and get a tax break too. Anything Debt Collector gets above that amount is profit. These numbers are amazingly realistic.
You must take control when dealing near Debt Collector. Knowledge is power.
I agree with davidm
1.Pay the 2nd Mortgage back and start building your credit mark up or
2. File bankruptcy and then view your score hit bottom
Just because your collateral is gone does not let you of the hook for that second mortgage. You took the money from that second mortgage company next to the promise to pay it back. Now they expect you to take-home pay it back. Your credit record will not advance until you become current on this debt and bankruptcy certainly won't lend a hand to improve it. I hope the new errand was worth it. Learn from this. No more home equity loans or second mortgages. If you can't afford to buy something without taking such activities you can't afford the item.
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