First, let me say this is a great board with tons of cool info! Now on to my query: I just pulled my EQF report (FICO 631) and discovered an interesting thing about my second mortgage: it is listed as "Included in Bankruptcy" with no late-pays (which is patently not true, LOL). We did not reaffirm this debt, but since we kept the house and reaffirmed the primary mtg, we naturally assumed the 2nd mtg would have to be repaid anyway. BTW, the BK was filed 12/2001 and discharged about 4/2002. The "date of last activity" listed per EQF is11/2001, before the BK, although I did make some payments after BK, the last one being about 11/2002. Odd. We have not been able to pay the 2nd mtg consistently--I gave up in fact, and I assume they will eventually try to foreclose. However, we plan on selling the house within the next two months, in which case we can satisfy both mtgs, assuming we get market value for house. My question is this: How likely is it that the 2nd mtg holder WILL seek foreclosure anytime soon? We owe them 29k, and the primary 76k. House is realistically valued at about that or possibly a bit more (at best, 110k). I figure if they try to forclose, they'll only get a fraction of what they are owed, due to the legal costs they will incur initiating and completing foreclosure. Am I right in this respect? I'm trying to firgure out if my plan to sell the house Aug/Sept., then pay the bastards off is really feasible. Don't have any other options. Going through a divorce to boot, so I'll be danged if I'll pay the outsanding/late amount now!
Sounds like you need to call them and let them know that you're trying to sell it, and that you appreciate their patience while you get this done. That will buy you some more time, if in fact they are planning on foreclosing. The worst thing you can do is ignore them and hope it doesn't happen. I suggest you get moving on selling the place. No matter when you sell it, you will stilll need to pay all the late payments and past-due interest. So, the sooner you sell, the less money you'll owe. wBy the way, were they "bastards" when you cashed their check and spent the money?
Figure of speech. And yes, we cashed the check and spent the money. Just us; no one else. We can and must face the responsibility and consequences for our trading unsecured debt for secured debt. After all, we're in good company--or at least, abundant company. The percentage of American households that have gotten home equity loans for just this purpose is testament to the monumental stupidity shared by many, and happily expolited by lenders. I think the acronym HEL is quite appropriate.
WOW...that was said too good! I have a HELOC on my home but I used it to add a new roof, siding and various other home improvements. It just makes no sense to take unsecured debt and place into secured debt. You lose your home that way!
