We received an "Intention to Foreclose" letter today from Interstate TD Investments. They acquired our 2nd Mortgage after it was sold off last month. Here is some background info:
Location: Idaho
Value of home: 127,000 (according to Zillow, for what that is worth)
Owed on 1st: 84,000
2nd mortgage is at 37,000 owed with late fees, interest, etc.
Both were discharged in our Chapter 7 Bankruptcy in August of 2011
We've paid through on our 1st mortgage, never missing a payment. We did NOT reaffirm the loan.
We stopped paying the second mortgage in 2011. It has been sold twice, with Interstate TD being the new lien holder.
Some thoughts and questions...
Is an "Intention to Foreclose" letter always the beginnings of the foreclosure process, or are they sometimes just a way to try to initiate some sort of payment agreement? (we've not received a notice of default, or an actual "notice of foreclosure")
We've actually been saving, and were going to write a settlement offer on the 2nd this summer. Would it be wise for me to simply write that settlement offer letter in response to their "Intention to Foreclose" letter? While the house is not underwater, if you consider the amount still owed on the first against the amount they might get at auction...and all fees they would have to pay...it does not seem like they would stand to gain enough to make it highly worth their while to foreclose. Any suggestions on a reasonable settlement offer?
If we decide to walk away from the house, how much of a hit is a foreclosure on the ability to buy a home in the future. Of course, we'd stop paying the first and start saving... Any idea how long foreclosures are taking in Idaho? Also, the second mortgage is only in my husband's name. He took it before we were married. Does that mean a foreclosure would only show up on his credit report? Would we maybe be able to get a loan in my name sooner if the foreclosure doesn't show up for me?
I've been reading these forums for years now... I appreciate any and all help you can offer as I process our newest circumstances in home ownership post Chapter 7
Location: Idaho
Value of home: 127,000 (according to Zillow, for what that is worth)
Owed on 1st: 84,000
2nd mortgage is at 37,000 owed with late fees, interest, etc.
Both were discharged in our Chapter 7 Bankruptcy in August of 2011
We've paid through on our 1st mortgage, never missing a payment. We did NOT reaffirm the loan.
We stopped paying the second mortgage in 2011. It has been sold twice, with Interstate TD being the new lien holder.
Some thoughts and questions...
Is an "Intention to Foreclose" letter always the beginnings of the foreclosure process, or are they sometimes just a way to try to initiate some sort of payment agreement? (we've not received a notice of default, or an actual "notice of foreclosure")
We've actually been saving, and were going to write a settlement offer on the 2nd this summer. Would it be wise for me to simply write that settlement offer letter in response to their "Intention to Foreclose" letter? While the house is not underwater, if you consider the amount still owed on the first against the amount they might get at auction...and all fees they would have to pay...it does not seem like they would stand to gain enough to make it highly worth their while to foreclose. Any suggestions on a reasonable settlement offer?
If we decide to walk away from the house, how much of a hit is a foreclosure on the ability to buy a home in the future. Of course, we'd stop paying the first and start saving... Any idea how long foreclosures are taking in Idaho? Also, the second mortgage is only in my husband's name. He took it before we were married. Does that mean a foreclosure would only show up on his credit report? Would we maybe be able to get a loan in my name sooner if the foreclosure doesn't show up for me?
I've been reading these forums for years now... I appreciate any and all help you can offer as I process our newest circumstances in home ownership post Chapter 7
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