Cherdeb
LoanSafe Member
I received a phone call that my house was in foreclosure with a sheriff’s sale scheduled in approximately 30 days. I have not received any notice but verified the information at the county clerk. This is in my 2nd mortgage stemming from an 80/20 piggyback at purchase in 2005. In 2009/2010, I received a modification from the primary lender (a really poor deal but I felt I had no choice but to accept and move forward.). I have not made any payments in the 2nd since 2010.
Original Loan:140,000 Primary, 35,000 2nd
Modification: 140,000 at 3% with approx $60,000 interest, fees etc deferred until the end of the loan or sale. At this time, 2nd refused a modification or settlement on their balance.
Current: payoff on Primary is $190,000. Payoff on 2nd in $86,000. Online estimates of home value are $250-260k, but the house needs a lot of work. I would estimate true sale value would not be above $200,000. The secondary foreclosing will not gain them any funds, but I suspect they are going off the balance of the interest bearing first and the inflated house value.
We are open to both leaving/selling the home and relocating to a condo. But we may want to stay. My husband’s health is not great and maintenance has fallen behind and become a lot for us to manage. Obviously, if we choose to leave, I’d like it to be on our time frame not forced.
I’d like advice on my potential courses of action. We are in Michigan. I know bankruptcy is an option but I would prefer to avoid that route. Most “help” I find is either bankruptcy attorneys or investors looking to lowball a sale.
Original Loan:140,000 Primary, 35,000 2nd
Modification: 140,000 at 3% with approx $60,000 interest, fees etc deferred until the end of the loan or sale. At this time, 2nd refused a modification or settlement on their balance.
Current: payoff on Primary is $190,000. Payoff on 2nd in $86,000. Online estimates of home value are $250-260k, but the house needs a lot of work. I would estimate true sale value would not be above $200,000. The secondary foreclosing will not gain them any funds, but I suspect they are going off the balance of the interest bearing first and the inflated house value.
We are open to both leaving/selling the home and relocating to a condo. But we may want to stay. My husband’s health is not great and maintenance has fallen behind and become a lot for us to manage. Obviously, if we choose to leave, I’d like it to be on our time frame not forced.
I’d like advice on my potential courses of action. We are in Michigan. I know bankruptcy is an option but I would prefer to avoid that route. Most “help” I find is either bankruptcy attorneys or investors looking to lowball a sale.