Ready to Go in AZ--Walking with all of your help!

wanttobail

LoanSafe Member
Dec 14, 2010
7
0
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i followed your post and thanks, im in az. dsfcu mortgage. i am deep under water and have the opportunity to buy another home. the same as your situation.except i live in a crime riddled hood and fear walking down the street in day light.i have had a lot of fears about what could happen , and it sounds like nothing, right?
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
Cmass--you're welcome. I have a bunch of cards in my name, car loan, etc. I have had 2 cards drop my credit lines to a few hundred dollars above my balance. I continue to pay everything else on time. My credit score had a high of 770 and is now about 595, with my mortgages reporting 90 days late. I'm not out to buy another home and I won't need another car for 3-4 years, and renting doesn't seem to be a problem, so really no issues with the credit score right now.

wanttobail....hope it works out for you. I stressed a lot too...still am, until it's sold at trustee sale. I don't like to count my chickens early! But if you read a lot of the threads on this site, you'll be armed with so much information that it all should go smoothly. With mine, takeoff has been smooth. I hope the landing is too......
 

wanttobail

LoanSafe Member
Dec 14, 2010
7
0
0
i foreclosed on a home in 98 and bought this one in 2007 . in 98 i never heard a word from the bank,because i went off the radar.Nothing happened no lien what so ever, the money i owed the hoa got rolled into the resale, i saw this on the public record site.This situation is different. i get a call from the cu on the 13 asking me whats going on. ive had this mortgage for over 3 years now and have never been late. Im thinking about renting this house out for a while even if it's a loss. I bet I can make up the difference from the money I will save from the new place. Im going to see a lawyer in a few weeks to seal up any questions we still have. I have been 100% truthful on the new mortgage application. they don't consider rent money as income and will only grant a mortgage if i qualify for both homes. and...................................?
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
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UPDATE #10

So as I reported here about a week ago, I got my Notice of Trustee sale for early March, 2011. I'm very happy. I'd like to report a few things since then.

I checked on the website for my lender's foreclosures and, even with a general idea of how many foreclosures were happening, was still shocked to see the pages and pages and pages of other foreclosures happening the same day as mine! Wow. LeftyAZ once said this situation was far from over in AZ, and I agree!

Also: now that I have a date for my trustee sale, I followed up on a very nice apartment I'd like to rent. I was able to reserve it, get approved for move in, all quickly and easily and with no deposits required. Seems that they are very understanding about foreclosures, again just like I've read on other threads. I know my FICO is already down to about 595 with two accounts reporting 60 and 90 days late (1st and 2nd mortgages), but this was fine to rent a (very nice) apartment. I can't wait until I'm free of condo responsibilities, and my mom can visit my new one-floor unit.

So far I'm still very happy with my decision, in case anyone is wondering. Talk soon!
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
UPDATE #11

Not a whole lot new but thought some might be interested in how things have gone with my credit dropping. My score went down to around 600 after my lenders started reporting me late. However, I was able to get approved for an apartment in a large, nice, new, desirable complex with no deposits required (good enough credit) AND was able to set up a new electric account at the new place (with a different utillity company than I have currently) with no deposit required.

Like others have said, a foreclosure does not seem to be a hindrance to renting. SO looking forward to the trustee sale being over and done with in early March!

No news on my 2nd mortgage lender, other than the letter I got the other day saying my property would be foreclosed on if I didn't pay up. REALLY? LOL.

Everyone hang in there, I'll post again if anything else new happens. Still happy with my decision to walk....
 

LevinGrant

LoanSafe Member
Dec 27, 2010
5
0
0
Are you self employed? If you are you can be set up to be uncollectible and then you wouldn't have to worry about the credit cards or deficiency on the second.
 

Magic Beans

LoanSafe Member
Dec 7, 2010
57
0
0
WA
UPDATE #10

I checked on the website for my lender's foreclosures and, even with a general idea of how many foreclosures were happening, was still shocked to see the pages and pages and pages of other foreclosures happening the same day as mine!
Hey Readytogoaz,

Love your thread; it's been very inspiring. I was wondering if the website you have for your lender's foreclosures came with any of your NOD or NOTS information, if you were able to find it on its own. I'll likely be starting my walk in WA on 2/1 and the one thing I'm concerned about is whether or not the auction sale will be postponed. I know there's nothing to be done about it, but if I could see how many foreclosures are going on, I can pretend that I'll be able to predict it. Not that there's any sense in trying to apply logic to what the banks are doing.

Thanks for the updates!
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
Hey Readytogoaz,

Love your thread; it's been very inspiring. I was wondering if the website you have for your lender's foreclosures came with any of your NOD or NOTS information, if you were able to find it on its own.
First of all, thanks for your comments! Second....I had to wait until I got the Notice of Trustee sale which had the information enclosed as to where I could find additional online information. I anxiously checked the mail each day until I got that, so I had no idea of the trustee sale date until then. The NOD just told me they were definitely pursuing foreclosure, no other information.

I do check the site occasionally to see if my sale gets postponed, but still the same date so far. Best of luck of your journey!!
 

Magic Beans

LoanSafe Member
Dec 7, 2010
57
0
0
WA
First of all, thanks for your comments! Second....I had to wait until I got the Notice of Trustee sale which had the information enclosed as to where I could find additional online information. I anxiously checked the mail each day until I got that, so I had no idea of the trustee sale date until then. The NOD just told me they were definitely pursuing foreclosure, no other information.

I do check the site occasionally to see if my sale gets postponed, but still the same date so far. Best of luck of your journey!!
Thanks for the response. I kind of figured that would be your answer, but I also thought it was worth a shot. Besides, how else am I going to get to know my fellow walkers if I don't "talk" with you?
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
UPDATE #12

I got something interesting in the mail today...an offer from my 2nd mortgage lender to modify my loan terms to significantly reduce the interest rate (from 8 to 4 percent). All I have to do is sign and return the agreement and it's done.

Thing is, one of the conditions is that no sale or transfer of the secured property may occur, or the whole loan amount becomes due. So, even if I wanted to keep the loan and pay them for the next 25 years (LOL NOT), I couldn't because I am headed to foreclosure.

However, I see this still as a good sign. I didn't request the modification at all, it was up and offered to me. If I were staying in the home, it would be a good deal. No financials were requested from me. I'm hoping this means they will be OK to deal with once the foreclosure occurs, and I can try to settle the loan. I was planning to call and or write my 2nd once I know the foreclosure is a done deal; I have read on here that most 2nd's won't talk settlement before then (for good reason, just in case there's enough money from the foreclosure to pay off their debt).

Anyway, I'll keep you posted. Moving day is under a month away! Can't wait! Take care everyone.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
UPDATE #12

I got something interesting in the mail today...an offer from my 2nd mortgage lender to modify my loan terms to significantly reduce the interest rate (from 8 to 4 percent). All I have to do is sign and return the agreement and it's done.

Thing is, one of the conditions is that no sale or transfer of the secured property may occur, or the whole loan amount becomes due. So, even if I wanted to keep the loan and pay them for the next 25 years (LOL NOT), I couldn't because I am headed to foreclosure.

However, I see this still as a good sign. I didn't request the modification at all, it was up and offered to me. If I were staying in the home, it would be a good deal. No financials were requested from me. I'm hoping this means they will be OK to deal with once the foreclosure occurs, and I can try to settle the loan. I was planning to call and or write my 2nd once I know the foreclosure is a done deal; I have read on here that most 2nd's won't talk settlement before then (for good reason, just in case there's enough money from the foreclosure to pay off their debt).

Anyway, I'll keep you posted. Moving day is under a month away! Can't wait! Take care everyone.
readytogoaz
I think you already know this, but your 2nd is really immaterial at this point. When your 1st forecloses, your 2nd will be wiped out. They are a recourse lender and a "sold out junior" lender, (now an unsecured creditor), but still theoretically able to sue you for the amount owed on the debt. However, I wouldn't worry about it. Why? Because I've seen no evidence of any recourse "sold out junior" lender in any state sue the borrower, even though not legally barred from doing so.
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
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readytogoaz
I think you already know this, but your 2nd is really immaterial at this point. When your 1st forecloses, your 2nd will be wiped out. They are a recourse lender and a "sold out junior" lender, (now an unsecured creditor), but still theoretically able to sue you for the amount owed on the debt. However, I wouldn't worry about it. Why? Because I've seen no evidence of any recourse "sold out junior" lender in any state sue the borrower, even though not legally barred from doing so.
Tomeason--thanks. I do worry though, from an experience a coworker of mine had, though it was with a delinquent credit card, not a 2nd mortgage. They let it go to a collections agency who was NOT willing to settle in the least, and charged 10% interest on top. If he had settled with the card servicer, he probably would have gotten down to half or less of the outstanding loan balance. I would rather deal with my 2nd mortgage lender for this reason, so that they might settle with ME as opposed to settling with a collections agency who will have 6 years from date of default under AZ law to collect the debt. I have confirmed this time frame with my attorney...assuming it's considered a non-purchase-money 2nd loan, and they are sold out at foreclosure, they do have 6 years to obtain a judgement. So even if no one is suing now....what if my lender packages up a bunch of these loans in 4 years and sells them to an aggressive collections agency, and what if by then I have more assets to grab?

Assuming I can settle for something I can afford, I would prefer to do it now, with my lender, and get it over with. Thoughts anyone?

In other news.....trustee sale is about 3 weeks away and I move into my new apartment next week :)
 

rightaz

LoanSafe Member
Jan 6, 2011
12
0
0
Phoenix AZ
Readytogoaz,
I'm in the same boat, with a condo in Phoenix. I'll share my scenario first, just because they give you a NTS (trustee sale) doesn't mean it's going to happen that day. Mine was recorded in 4/2010 and have yet to go to auction. That's 13 cancellations with no opening bid. My property was in a great real, the declined 75% in value. I purchased at 167, now worth 40. (Pathetic) In addition to that, I moved out of the property on the assurance it was going to auction. If you have an HOA, stay current on that. I have a 1st & 2nd both purchase money. My 1st was a mortgage backed security. I have a gut feeling they have no clue who owns the note. I will be at the year mark soon and plan on legal action to create a papertrail. You actually have 30 days to move out of the condo after the auction happens. Looking back, I'd stay at the condo and wait for the sheriff to knock on the door, then you've got 5 days. I can't put enough in words how this is an emotional roller coaster, but know you are not alone. Think of yourself and your financial recovery....the banks don't care about you.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Tomeason--thanks. I do worry though, from an experience a coworker of mine had, though it was with a delinquent credit card, not a 2nd mortgage. They let it go to a collections agency who was NOT willing to settle in the least, and charged 10% interest on top. If he had settled with the card servicer, he probably would have gotten down to half or less of the outstanding loan balance. I would rather deal with my 2nd mortgage lender for this reason, so that they might settle with ME as opposed to settling with a collections agency who will have 6 years from date of default under AZ law to collect the debt. I have confirmed this time frame with my attorney...assuming it's considered a non-purchase-money 2nd loan, and they are sold out at foreclosure, they do have 6 years to obtain a judgement. So even if no one is suing now....what if my lender packages up a bunch of these loans in 4 years and sells them to an aggressive collections agency, and what if by then I have more assets to grab?

Assuming I can settle for something I can afford, I would prefer to do it now, with my lender, and get it over with. Thoughts anyone?

In other news.....trustee sale is about 3 weeks away and I move into my new apartment next week :)
readytogoaz
Thanks for your post. Although it's not the path I'd choose, I believe you should do whatever you think is best for you.
BTW, if your coworker hasn't done so already, he might consider just stiffing the CC company, i.e. paying nothing instead of settling.
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
readytogoaz
Thanks for your post. Although it's not the path I'd choose, I believe you should do whatever you think is best for you.
BTW, if your coworker hasn't done so already, he might consider just stiffing the CC company, i.e. paying nothing instead of settling.
tomeason...thank you for your post :) I do want to point out that the coworker did just that...then the CC company sold the debt to a collections agency, who got a judgement for the full amount. THAT'S what I'm afraid of with my 2nd mortgage...to pass up an opportunity to settle with my lender before they sell it to someone who won't want to negotiate.
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
Aggressive 2nd....

First of all, many thanks to tomeason, who I (and many others) have been having conversations on a different thread about dealing with 2nd mortgages. See here for that:

http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd-6.html

I just wanted to report that as of a few days ago, my 2nd lender got much more aggressive with phone calls. Found out my cell number, and called my sister out of state looking for me! I have never used her phone number. Looks like it's time for the cease and desist letter finally.....
 

Galan007

LoanSafe Member
Nov 9, 2010
39
0
0
To any who can answer:

When I purchased my first home (approx. 4 years ago) I was a first time home buyer. I was able to qualify for a loan that did not require any money down (not a VA loan.) It was/is an adjustable rate mortgage, but at the time it was well worth it to not have to put thousands down beforehand.

Anyhow, the type of loan it is, and the fact that it is an adjustable rate won't make a difference regarding whether or not the lender can pursue for deficiencies, correct? It is the original purchase money loan, I don't have a 2nd, and I've never refied...

Thanks.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
To any who can answer:

When I purchased my first home (approx. 4 years ago) I was a first time home buyer. I was able to qualify for a loan that did not require any money down (not a VA loan.) It was/is an adjustable rate mortgage, but at the time it was well worth it to not have to put thousands down beforehand.

Anyhow, the type of loan it is, and the fact that it is an adjustable rate won't make a difference regarding whether or not the lender can pursue for deficiencies, correct? It is the original purchase money loan, I don't have a 2nd, and I've never refied...

Thanks.
Galan
Not sure what state you're in, but f you're in a trustee sale state like CA you are protected against any deficiency. You have a purchase money loan and needn't worry.