Current on the first, but late on the second mortage.

[rooster0330]

Just a question if anyone can help. We have a first mortgage and home equity loan. We are current on the first, but the second we took a 2 month deferement. We made a payment March 15, 2011. They called today looking for April's payment. I told them I am working on it. They said if it is not paid they will call in the deferement and start pre-foreclosure proceedings. Ok, my questions are is anything I can do. How does the foreclosure process work, because to be honest in about 2-3 months we FINALLY are going to be straightened out with money, so would that by me sometime and then at some point of the whole foreclosure process, make up the back payments and stop it, or I don't know.....Do you think it is worth calling them back and asking if they could do something, (although to be honest, I don't know what they would be able to do at this point). Thanks for any and all input, I am really at my wits end!

[ValleYum]

How much is your house worth?

How much is your first mortgage?

How much is your second mortgage?

Are your mortgages with the same lender or 2 different lenders?

No one can really specifically help you unless we know this info.

Generally though, unless you have equity in your home over and above the amount of the first mortgage or both mortgages are financed through the same place, it is likely that your second is just trying strong collection tactics to get your $$.

[rooster0330]

How much is your house worth? my house is worth loosely 215,000-225,000. the prices have dropped drastically in the past year!

How much is your first mortgage? 159,000.

How much is your second mortgage? 77,000

Are your mortgages with the same lender or 2 different lenders? 2 different lenders

No one can really specifically help you unless we know this info.

Generally though, unless you have equity in your home over and above the amount of the first mortgage or both mortgages are financed through the same place, it is likely that your second is just trying strong collection tactics to get your $$.

I don't know what to do, he was nasty as all heck this morning on the phone, and said you better take care of this otherwise we will start pre-foreclosure proceedings. I just want to know also I guess if I can buy some time!

[ValleYum]

Gosh Rooster, almost all of your 2nd mortgage is secured by the value of your home. That makes the 2nd mortgage holder have a lot more power over your situation.

Let's say the house is worth $215k subtracting the 1st mortgage of $159k leaves $56k in equity for the 2nd mortgage holder to get if they foreclosed on you. Of course, if they started the foreclosure or short sale process they would have to pay off the first mortgage holder, and pay realtor fees, legal fees, etc. so that would be about ~15k from their $56k.

So you have to ask yourself, will they foreclose for ~$41k?? I hate to say it but I think they might. If the house is worth more than the $215k that only makes the 2nd mortgage holder more likely to foreclose.

From other NJ folks on here, I understand that you would be responsible for the legal fees and also for the deficiency (remaining) balance due after the foreclosure sale occurs.

The only good news about NJ foreclosures (if there is such a thing!) is that since they use judicial foreclosure proceedings, typically they have one of the longest wait time for foreclosures in the U.S.

How long does it take to foreclose a property in New Jersey?

Depending on the court schedule, it usually takes approximately 250 days or more to effectuate an uncontested foreclosure. This process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files for bankruptcy. New Jersey has one of the longest wait times for foreclosures. A defendant has 35 days in which to file an answer to a foreclosure complaint otherwise default will be entered. Once default is entered the plaintiff must wait another 45 days before entering final judgment and thereafter a writ of execution is issued and delivered to the Sheriff to effectuate the foreclosure sale process. The defaulting borrower must be given at least 10 days notice before the foreclosure sale can take place.

http://www.foreclosure.com/statelaw_NJ.html

I am sure this isn't what you wanted to hear but I hope it gives you a little bit of information.

[rooster0330]

Thanks no worries, everything you said really is what I knew anyway!!!

After they decided to foreclose do you have any time or do they give you the opportunity to catch up on the loan, in other words, can I pay any past due amounts and make the loan current and stop the foreclosure proceedings. Like I previously stated, in another 2-3 months we should be fine, a bunch of things coming up including my husbands huge contract with a new customer, that will straighten us out. I just need to stall it a couple of months. Any thought on this?

[debee]

Yes, even if they initiate foreclosure proceedings there is still something you can do. In fact, even if they sell it at a foreclosure auction you still get ten days. You can read about it here: http://www.foreclosurelaw.org/New_Je...losure_Law.htm

In addition to VYum's great comments, I'd only add that you might want to find out for sure what you've got in equity. If you have a friend in real estate, or have a friend who has a friend, I would call in a favor now to find out what the deal really is. You can't trust the accuracy of online sites like Zillow. Before you plan on paying catch-up with the debt and adding on all those lawyer fees and late fees, etc make sure you're not throwing your money into the fireplace.

Have you bk'ed at some time in the past? (Asking because you're here) If you did, was this house included? Because if it was, that's a game changer too.

[rooster0330]

No, I haven't filed yet, but in the not too distant future, I am only looking to get another 2-3 months before they foreclose at that point I would be more than able to catch up, I just want to make sure they would give me the opportunity to catch up on the back payments. Thanks!!

[shark66]

If you need just 2-3 months, don't send them a red cent. They won't be able to foreclose that fast.

But you must have all of your ducks in a row.

Good luck.