Possible Foreclosure ??

[november4]

What is the name of your state? Michigan
Due to an unwise financial arrangement, I have two homes that I am paying mortgages on. I am trying to sell one of them and it has been on the market for 2 years. I have only had one serious offer that unfortunately fell through 1 week before close. My dilemma is that over the past year, my mortgage has gone from $591 to over $1100 (increase in variable interest rate and taxes now escrowed). I am 2 months behind on my mortgage. I have contacted the mortgage company about my problem with making my payment and they were of no help. This is sad because I have a good payment history but I now look financially irresponsibile. I owe about $104,000 on my mortgage and have an appraisal for $117,000. If I were to let it go to foreclosure, can the mortgage company come after me for the equity that I have in my other home? I hate to consider foreclosure but I feel like I am sinking. I appreciate any advice. Thank you.

[HUD-1]

On the market for 2 years? Your appraisal and your selling price must be too high. You can refi into a fixed rate and rent it out, you can lower the asking price and approach the lender about a short sale or you can walk from it. The lender MAY persue a deficiency judment against you and attempt to attach your assets if you simply walk away. if they agree to a short sale, you should get agreement that they will not pursue a deficiency judgment. One note: lenders usually work out short sales only with owner occupants.

[LindaP777]

Originally Posted by november4

What is the name of your state? Michigan
Due to an unwise financial arrangement, I have two homes that I am paying mortgages on. I am trying to sell one of them and it has been on the market for 2 years. I have only had one serious offer that unfortunately fell through 1 week before close. My dilemma is that over the past year, my mortgage has gone from $591 to over $1100 (increase in variable interest rate and taxes now escrowed). I am 2 months behind on my mortgage. I have contacted the mortgage company about my problem with making my payment and they were of no help. This is sad because I have a good payment history but I now look financially irresponsibile. I owe about $104,000 on my mortgage and have an appraisal for $117,000. If I were to let it go to foreclosure, can the mortgage company come after me for the equity that I have in my other home? I hate to consider foreclosure but I feel like I am sinking. I appreciate any advice. Thank you.

Why can't you sell the house? Overpriced?
Try refinancing the house and get a lower, fixed interest rate.
Try renting the home you're trying to sell or offer it "lease with option to purchase". The rent should be enough to cover your payments.

If the bank forecloses, yes, they can still come after you for the balance if they choose.

[november4]

Thank you for your advice. In 2004, I had an appraisal for $126,000 (which I always thought was high). In Feb. '06, I received an appraisal for $117,000. When listed with an agent, I was asking $119,000 then $115,000. Just recently, my contract was up and I am trying to sell it on my own for $107,000. I thought that lowering the price and eliminating the agent fees was worth a shot. There are soooooo many houses for sale in my town. Thanks again.