Quote:
Originally Posted by CaliforniaChief
They refinanced themselves up to the height of the value of their home...over $340,000...
Dayze it would be good to find someone to be your go-between if you negotiate a short sale...someone who is fighting for you but not emotionally connected to the situation.
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I agree.
I’m in the process of finding out if they will be willing to do a Deed in Lieu of Foreclosure (thanks MahiMike for the suggestion).
I contacted the VA to determine if a foreclosure were to go through, could the lender pursue any negative equity from me after the foreclosure. They advised ‘no’. The only thing I might be on the hook for, would be any overage with the VA in order to use a VA loan in the future. I would have to resolve this before I would eligible for a VA loan. Apparently around 25% of the loan amount covers any potential negative equity. I’m 99% sure this 25% would be enough to cover me from a future VA eligibility standpoint. But either way, the lender wouldn’t be coming after ‘me’.
I’m basically at the point where I’m going to request a Deed In Lieu of Foreclosure; or they can have the GD thing through the regular foreclosure process. Especially upon learning from the person handling my VA case that the loan mod will most likely not reduce my payment significantly enough to actually ‘help’ in continuing to make payments. He said after they tack on the missed payments and any penalties, and the small rate reduction they would apply would probably only effect my payment by $50; $100 at best; it might even increase. He also said he can’t recall ever seeing a lender simply move the missed payments to the back end/deferred.
So, either way it looks like we’d have to move. It seems it would make more sense for them to do a DIL because they could sell the property immediately, rather than waiting through the 12 month redemption period of the VA loan in order to sell it. Not to mention saving the costs of going through the foreclosure process. But, even if they won’t do DIL, fuck em. They can have it.
While we have scrapped together enough to get current, I don’t trust Wells Fargo. The money will obviously go towards unrealized interest, and not effect principle; our payment most likely wouldn’t change/might even go up; so we’d be right back in the same spot we were in last October. Only next time we fall behind, we might be out on our a** with zero cash – since we used everything to get ‘current’. Not to mention we calculated that each of us would have to work about 25 hours per week at a part time job simply to break even each month.
DIL, or foreclosure. Either way I’m ‘done’. We’re going to spend Saturday driving around looking at other areas – trying to find contract for deed type FSBOs/Builder etc. Or, worse case, apartment / townhome / rental etc. a Temporary fix to get debt back down (debt incurred because of 6 months of no job), restore credit etc. We’ll get back in the saddle in a few years and may be better off than if we were to stay.
We fought the good fight, but it’s time to realize we shouldn’t go into the next round.