LISAW asked:
I have a 1st & 2nd. Both mortgages are current- now. I am upside down in my property. Both loans are re-setting 9/08. Since I have no equity, what is the likelihood the 2nd will foreclose? If they decide not to foreclose can I still stay in the home & keep making the 1st mortgage payments ? How is this reported to the credit reporting agencies? For how long?
Debra
I have a 1st & 2nd. Both mortgages are current- now. I am upside down in my property. Both loans are re-setting 9/08. Since I have no equity, what is the likelihood the 2nd will foreclose? If they decide not to foreclose can I still stay in the home & keep making the 1st mortgage payments ? How is this reported to the credit reporting agencies? For how long?
Debra
Tammy
They will file the notice to foreclose and perhaps the 1st will pick it up, maybe. It will be very adverse to your credit!
Please see the website below and see if HUD can help you refinance even if you have very little equity. It cant hurt.
Hope it helps
Bertha
“What is the likelihood it will foreclose?” That depends entirely on what you do . If you do not pay the 2nd I would guess that it is 100% certain that the lender will foreclose which makes your second question moot. It will be on your credit record record for 10 years.
Lester
The odds of foreclosure are 100%. That is what you agreed to. You took their money and agreed to forfeit the house if you decided to screw them.
You can’t keep the house, you already agreed to the foreclosure when you accepted the cash.
It is reported as a foreclosure. How long it stays depends on if you have to pay back the money you spent or not. If you do it stays for 7 years after you repay it. If you do not and it is a charge off it stays for 7 years and then drops off.