3 years deficiency second mortgage
Dear David,Since 1988 I owned a house in Riverside, in 2005 was valued at 600K, I did cashed out refi. . The 1 mortgage with CHASE BANK amount 195K (pay 1260/m), and got a 2 mortgage in Dec 2006 with BANK OF AMERICA amount of 243K, (pay 1578K/m).In 2008, my house then only value at about 230K, I wrote letters Request for short sale, both wrote back in Dec 28, 2009, email said they are working on it.But in Feb 8-2010 Chase bank foreclosed and sold my house for 220K, Chase got their money.Now B of A keep senting letter about B of A second mortgage of 245K, including non-pay monthly and late fee, Now total 299 k ..My credit now only 620.I am now own another 2 house under a company name, one value 350k, with equity 150K on it, and second one valued at 250k, with equity of 125k on it. And I owning some stock and fund about 80K, and saving account 50k with CitiBank and on my tax return 2011 my salary of a technician only 35k / year. This foreclosed in Feb 8, 2010. What can and will happen? will B of A pursue to collect the balance ?. Can I do some cash out refi..To buy more houses and apply for mortgages. Please help.. Thanks.J. Nguyen, email: gojoe1972@yahoo.com by gojoe1_879_803 from Fountain Valley, California. Mar 26th 2013
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Because the debt to BofA was secured by a second mortgage that was not used for purchasing the home, BofA still has the right to go after you for the debt that is owed. Your biggest problem is that they will likely sell the debt to an aggressive collection agency or law firm that troll for these kinds of loans. They will wait until you least expect it and then pounce with a lawsuit demanding all of the money you owed to BofA, plus years of interest that has accrued. They will win the lawsuit and you will end up with your assets seized and wages garnished. Your best bet is to follow Brian's advice and try and settle. Good luck. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions
(Over to you David...).
Larry Gray (lgray_312_247)
#597 ranked lender in California - 1,139 contributions
It likely will give you peace of mind to try and negotiate something with B of A. Unfortunately, you persued the short sale as you shouldat a time when many banks were less cooperative in helping people short sell their home rather than be foreclosed on.Quite often when people do get a modification loan on the first they may settle with the second as suggested already...for something like10% of the original loan amount. Your salary indicates perhaps that should be the maximum that you ought to have to pay to settle the debt. Best wishes.
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