I know of a couple who with a medical exception, was able to get approved to buy another home (a ranch home/no steps) while still carrying the burden of another mortgage from a house they bought less than 2 yrs ago (with steps). They need your expertise in what to do here.
By using a different lender than with the 1st home purchase, it seems to be like the new lender has some shifty business practices, if not desperation to get a loan processed. This lender was recommended by the first loan people (crazy!) as well as a realtor who is "great with short sales". Well, this realtor heard if from me. I basically told her this sounds fraudulent, and so we went back and forth. Shrug. Oh well. Not worried about this anymore. The loan went thru, they moved, and now they have a home sitting on the market and will be going into foreclosure in a few days. We knew it probably wouldn't sell and this would probably be the avenue they'd have to go down.
Btw, the realtor has been extremely unprofessional and it takes her forever to get things done. She also has had a few 'no shows'. She's always busy with her medical issues.
Here's the breakdown of their finances. I am recommending they file a ch.13 (if not a ch7) and just be done with this. They have almost $40K in unsecured debt and making their payments on time and no not to file BK. BUT now with this foreclosed home, how will this look on their credit report? Is it going to destroy their credit? They are now going on 3 mos. late on their "first" mortgage pymt. They stopped paying the mortgage on the old house as soon as they were in their new house. For obvious reasons?? That's the confusing part is that the bank didn't care?? I've been told that they should have had to provide documentation in order to get the new home, that states that they will find tenants for their old home. I mean, sign something on the dotted line. But I guess this didn't happen? The new bank doesn't care??? (repeating myself)
I hope you are following this and that you can give them some positive? feedback. Their only asset is a $18K motorcycle, but this is financed, and so it's not really an asset. They are worried that if they filed that the trustee would make them sell the bike. Seems logical to me though.
So since their credit will be messed up from a foreclosed home in their credit history, shouldn't they just file a 7 or 13, so this way they can completely wash out that $40K in unsecured debt, since their credit will be ruined anyway?? And by filing (if they qualify w/ the means test) wouldn't this look nicer on their credit report? I don't want them to have a neg. mark sitting on their report for 10 yrs? (How long would a foreclosed home show for?)
Financially for them, things are tight. They do not plan to move again, as they are older. But anything can happen and they could end up wanting to move in a few years. Never say never.
The reason why filing has come up is because they are being threatened to have their wages garnished, on the 2nd mortgage part. This is the 2nd mortgage on the 1st loan, roughly $17K. They bought an a/c unit and so that was part of that. They qualified for the 2nd mortgage 1 mo. after getting their 1st home almost 2 yrs ago. So I guess I should be talking like their new mortgage is their 3rd mortgage. lol Following me?
I referred them to our atty. I want the daily collection calls to stop for them. I want them to be relieved of their $40K in unsecured debt. This is outside of the $17K 2nd mortgage. They've been told that if & when the house is foreclosed, then that the money the bank gets on the home will have to be split up and so does that mean that they will also write off the second mortgage part? Is it a charge off?
I know this is a lot of info and thanks for your insight. This couple also receives a pension, but is also working full time. I worry the collection calls will start at their place of employment and want them to be protected by an atty. Especially since there are a lot of unanswered questions with their realtor.
Ugh. Now my head hurts.
By using a different lender than with the 1st home purchase, it seems to be like the new lender has some shifty business practices, if not desperation to get a loan processed. This lender was recommended by the first loan people (crazy!) as well as a realtor who is "great with short sales". Well, this realtor heard if from me. I basically told her this sounds fraudulent, and so we went back and forth. Shrug. Oh well. Not worried about this anymore. The loan went thru, they moved, and now they have a home sitting on the market and will be going into foreclosure in a few days. We knew it probably wouldn't sell and this would probably be the avenue they'd have to go down.
Btw, the realtor has been extremely unprofessional and it takes her forever to get things done. She also has had a few 'no shows'. She's always busy with her medical issues.
Here's the breakdown of their finances. I am recommending they file a ch.13 (if not a ch7) and just be done with this. They have almost $40K in unsecured debt and making their payments on time and no not to file BK. BUT now with this foreclosed home, how will this look on their credit report? Is it going to destroy their credit? They are now going on 3 mos. late on their "first" mortgage pymt. They stopped paying the mortgage on the old house as soon as they were in their new house. For obvious reasons?? That's the confusing part is that the bank didn't care?? I've been told that they should have had to provide documentation in order to get the new home, that states that they will find tenants for their old home. I mean, sign something on the dotted line. But I guess this didn't happen? The new bank doesn't care??? (repeating myself)
I hope you are following this and that you can give them some positive? feedback. Their only asset is a $18K motorcycle, but this is financed, and so it's not really an asset. They are worried that if they filed that the trustee would make them sell the bike. Seems logical to me though.
So since their credit will be messed up from a foreclosed home in their credit history, shouldn't they just file a 7 or 13, so this way they can completely wash out that $40K in unsecured debt, since their credit will be ruined anyway?? And by filing (if they qualify w/ the means test) wouldn't this look nicer on their credit report? I don't want them to have a neg. mark sitting on their report for 10 yrs? (How long would a foreclosed home show for?)
Financially for them, things are tight. They do not plan to move again, as they are older. But anything can happen and they could end up wanting to move in a few years. Never say never.
The reason why filing has come up is because they are being threatened to have their wages garnished, on the 2nd mortgage part. This is the 2nd mortgage on the 1st loan, roughly $17K. They bought an a/c unit and so that was part of that. They qualified for the 2nd mortgage 1 mo. after getting their 1st home almost 2 yrs ago. So I guess I should be talking like their new mortgage is their 3rd mortgage. lol Following me?
I referred them to our atty. I want the daily collection calls to stop for them. I want them to be relieved of their $40K in unsecured debt. This is outside of the $17K 2nd mortgage. They've been told that if & when the house is foreclosed, then that the money the bank gets on the home will have to be split up and so does that mean that they will also write off the second mortgage part? Is it a charge off?
I know this is a lot of info and thanks for your insight. This couple also receives a pension, but is also working full time. I worry the collection calls will start at their place of employment and want them to be protected by an atty. Especially since there are a lot of unanswered questions with their realtor.
Ugh. Now my head hurts.
Comment