I have several questions

[sassy_woman]

What is the name of your state? Tennessee

My husband and I got a mortgage with IndyMac bank around March 2004. We got a home equity loan with Beneficial Finance around December 2005. Due to a series of events our financial situation deteriorated and we are 2-1/2 months behind with IndyMac. Our case is currently in Loss & Mitigation. We were told NOT to send any more money until we here from them. As such, we have now become three months behind. I was told my Loss & Mitigation that the best they can do for us is take the past due balance and spread it out over the remaining months of the mortgage (12 years). Since we can't pay our current mortgage (there is no one to borrow from), how are we going to pay an increase?

We cannot sell the house in its current condition, and we cannot take on another loan to pay for the repairs. I asked IndyMac if they would accept a Deed-in-Lieu of Foreclosure and they said they would not. That leaves a short sale. However, Beneficial refuses to release the lien, and IndyMac said that if Beneficial will not release the lien then we cannot do a short sale and either we have to get current or they're going to foreclose.

We have already receive the letter to "cure default" and have until June 8th to do just that.

IndyMac said if they foreclose then they will get the proceeds from the sale and will "count their losses" and leave it at that. I asked, "What if there isn't enough to give anything to Beneficial?" and was told, "they lose out."

Here are my questions:
1. If we cannot "cure default" by June 8th, how much time do we have before IndyMac forecloses (we live in TN) and we have to leave the home?
2. Is it true that Beneficial will lose everything, or can they file with the courts for a deficiency judgment? What if we continue to make monthly payments ... can they still file for a deficiency judgment?
3. Can Beneficial garnish our wages?
4. If we foreclose, how long will this remain on our credit report?

We're in a no-win situation and just want to know what we're facing, so we're prepared for it.

[FlyingRon]

Originally Posted by sassy_woman

1. If we cannot "cure default" by June 8th, how much time do we have before IndyMac forecloses (we live in TN) and we have to leave the home?

They have to advertise the foreclosure 20 days before the sale. After the sale closes they will begin eviction procedings.

2. Is it true that Beneficial will lose everything, or can they file with the courts for a deficiency judgment? What if we continue to make monthly payments ... can they still file for a deficiency judgment?

Foreclosure wipes out the lien. It doesn't wipe out the debt. If the sales proceeds to not net enough to pay off the debt, yes they can bring a deficiency suit against you.

3. Can Beneficial garnish our wages?

Beneficial can't, but if they get a judgment from the court can, you can petition for limitations on it's amount in Tennessee, but yes you will be paying.

4. If we foreclose, how long will this remain on our credit report?

Seven years. Not only the foreclosure but also the deficiency judgments if any.