Try to make this simple 2 years ago my wife got sick and our income was cut in half. We purchased another house we could afford and quick deeded our home to a freind..Well our freind stopped paying after a month and the home went into forclosure. We also had a second on it that there now coming after me for in the amount of 44k. Is this secured debt, home has been forclosed sold to a bank and now sold to its new owner.To make it even worse sold for half of what we payed plus we put down 200k and another 150k we put into it, talk about a tough pill to swallow... Sorry got of track, the question is the old second on the home went haven't owned for over a year 1/2 is secured or unsecured debt and how will this affect my chapter 13?
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how did the house sell if there was a 2nd lien on it? Had to show up on a title search somewhere and be satisfied to sell, or thats how it usually works with a junior lien. -
Good question, both loans were with country wide, we owed 550 with both loans and place was sold for 300k. If it was a equity line is that same as second?Comment
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Sounds like they are coming after you for a deficiency balance? If the house foreclosed/sold and there was not enough to satisfy the 2nd - it would now be unsecured debt.Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.)Comment
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This is in california by the way, not sure if its makes difference. I probably wouldn't do a 13 if I wasn't being sued for that amount.Comment
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I believe some states don't allow collection of deficiency balances for undersecured mortgages. Not sure which ones, its something I have not had to personally research.
No way this could be secured though - you no longer own the house. It shouldn't have an impact on your filing. The only possible exception would be if you were trying to file ch. 13, depending on the amount it could push you over the max for ch. 13 unsecured debt. (Which might make ch. 13 not an option for you.)Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.)Comment
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when you did the quit claim - I'm assuming you didnt have your name removed off the deed, as the only way to do that is by a buy out outright (brother did this with EX - and her name is still on the loan regardless of the quit claim). Ouch - she thought it removed her responsibility for the entire loan, it didnt - obviously. But that goes back to how it was sold to another person... with liens on it. Hmmm
CA has some pretty good laws to protect the consumer...Comment
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Was the loan purchase money? CA is a non-recourse state, so IF the 2nd mortgage was taken out to purchase the home (an 80/20 for example), then they can't hold you liable for the deficiency. However, if it was taken out after the purchase of the home, then they can hold you liable. It will be unsecured debt in your filing and paid at the same rate as your other unsecured creditors.Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
0% payback to unsecured creditors, 56 payments down, 4 to go....Comment
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After... so i guess it will be unsecured debt. We did get off the deed so that saved us tax wise, but it all went down before the BIG collapse and the loan mods. Bottom line guy got to live in a million dollar house for 14 months for free....Hindsight i should of stayed there rode it out probably still be there and still married( long story) now im getting divorced and im not even in my last house...Oh well, time to move on.Originally posted by momofthree View PostComment
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ok, so if you successfully removed your name from the deed and he re-fied it (only way to remove your financial obligation to the loan) - then how on earth can the mortgage company come after you? The house SOLD - back to the bank, then onto someone else - after you quit-claimed it and had your name removed off of all obligations. ?
Just signing over the deed doesnt release you from the financial obligation of the mortgage note - that has to be done by the mortgage company, and is usually done by a refinancing / buy-out.Comment
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I guess i left out the he was a freind and was going to refi it down the road, so the loan was still mine...But we did do a escrow and put the deed in his name.Comment
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ouch. I'm so sorry your friend screwed you like that. Doesnt matter if the deed was in his name, that just removed your personal liability for the property and any interest in it unfortunately
Well - I'd still question how it could be sold back to the bank, then resold to someone else after the foreclosure with the 2nd lien remaining on it. When did the bank resell the property? A title search had to be done, which would have shown the lien still attached. Did the 2nd agree to release their rights on the lien in order to have the property sell? Had to be otherwise the house couldnt sell or the new owner would've had to assume it.
Unless I'm wrong.. but I'm pretty sure I'm not... have you looked up the records for the property sale?Comment
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I call it the big scam no one talks about...Countrywide sells it for 300k to another bank they turn around and sell it a week later to the owner for 428k and then CW 1099's me for the rest since we payed 636k. 2 banks win and the state wins.....Maybe i should research this some, i get rid of that i only have 30k in CC and 35k in secured debt to deal with.Comment
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I'd definately look into it more, especially re: the 2nd lien - I still think they had to release it somehow to sell the house - and given you're in CA, you have some very friendly laws going your way, moreso than most states (CA and AZ are great for the laws).
Check into seeing if you could do the Mortgage Forgiveness Act (I think you can)... and write off the 2nd entirely under it if they 1099-C you.
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Just talked to ex, and it was a 2nd. I will look into it thanks pandora.Comment
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