My parents-in-law have a house that's worth $300k in the current market but the liens on it total up to $1.08m. Here's how it happened:
1st lien is the primary mortgage with CountryWide (now BoA Home Loans)
2nd lien is the guarantee / guarantors' lien for another loan with Prime Pacific
3rd lien is the BECU (Boeing Employee Credit Union) home equity line of credit that was used to fund the loan with Prime Pacific
A loan (2nd lien) with Prime Pacific was a real estate investment that fell through and it's now approximatel $400k upside down. Prime Pacific is now foreclosing on both the investment property and their home.
They make well under median income for their family. I was told that BECU is very bad and furious and sues every single debtor that doesn't pay as agreed (if you have any info / experience with this particular credit union, I would greatly appreciate if you share!). But I am still questionable as to whether they need to file for bankruptcy protection or not? The whole is foreclosed on in October and BECU will probably only attempt to do anything after that (that's if they will). And if they will, would they be able to tell them to simply stay away because if they proceed than my parents-in-law will file for bankruptcy protection? I mean they qualify easily with or without those loan payments.
I would appreciate your input on this as I would like them to avoid a bankruptcy as much as possible. They have all their credit card at $0 balance and perfect credit history other than the real estate loans.
Thanks in advance!
1st lien is the primary mortgage with CountryWide (now BoA Home Loans)
2nd lien is the guarantee / guarantors' lien for another loan with Prime Pacific
3rd lien is the BECU (Boeing Employee Credit Union) home equity line of credit that was used to fund the loan with Prime Pacific
A loan (2nd lien) with Prime Pacific was a real estate investment that fell through and it's now approximatel $400k upside down. Prime Pacific is now foreclosing on both the investment property and their home.
They make well under median income for their family. I was told that BECU is very bad and furious and sues every single debtor that doesn't pay as agreed (if you have any info / experience with this particular credit union, I would greatly appreciate if you share!). But I am still questionable as to whether they need to file for bankruptcy protection or not? The whole is foreclosed on in October and BECU will probably only attempt to do anything after that (that's if they will). And if they will, would they be able to tell them to simply stay away because if they proceed than my parents-in-law will file for bankruptcy protection? I mean they qualify easily with or without those loan payments.
I would appreciate your input on this as I would like them to avoid a bankruptcy as much as possible. They have all their credit card at $0 balance and perfect credit history other than the real estate loans.
Thanks in advance!
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