Property Question & Foreclosure

[micbur]

What is the name of your state? GA

First.....I have a possible pending foreclosure as the mortgage company royally mucked me and my family when we closed on our mortgage. Kinda feel like the new Capital One commercial where when the lady closes on her ARM she has a monkey on her back!! No other bank would allow us to roll in 47.49 acres in with our loan. They did with stipulation that I had to remain in the ARM for a year at which time I could refi. When I attempted to refi I found that no one would do the a refi with this much property. have had to endure the payment increases as well as pay reductions and layoff to where I can no longer afford my home. It has been on the market for 6 months and because of the size of the property, size of the home (5 bedroom/3.5 bath) and the location (very rural) we have had no buyers. So now the bank is foreclosing.

Have a question about the paperwork I received from the lawyers office. The parcel of land the home is located is 49.49 acre. We only financed 47.49 acres...the other two acres is financed with another home on the property. In the foreclosure sale can they legally sale the 49.49 acres even though only 47.49 was mortgage? What about the lender that has the 2 acres in with the other home?

The two acres were never spilt out since technically I own all the property. Can I go ahead and have the two acres cut out or can the foreclosing bank take all 49.49 acres even though the loan only shows 47.49?

Next question is an equity line I have on the property. Since I would no longer have the property that covers the equity line....what happens there?

What is worse on credit...showing a foreclosure or a bankruptcy? My credit is already ruined in trying to keep my home as I have used all my retirement money and such and I am still behind. Have to realize that my initial payments were $2,100 a month.....they are now 4,500 a month...should have sold a long time ago!!What is the name of your state?

[seniorjudge]

Q: Have a question about the paperwork I received from the lawyers office. The parcel of land the home is located is 49.49 acre. We only financed 47.49 acres...the other two acres is financed with another home on the property. In the foreclosure sale can they legally sale the 49.49 acres even though only 47.49 was mortgage? What about the lender that has the 2 acres in with the other home?

A: They can foreclose on the legal description that is on the mortgage. Look at that legal description; that is what will be sold.


Q: The two acres were never spilt out since technically I own all the property. Can I go ahead and have the two acres cut out or can the foreclosing bank take all 49.49 acres even though the loan only shows 47.49?

A: See first answer.


Q: Next question is an equity line I have on the property. Since I would no longer have the property that covers the equity line....what happens there?

A: You lose the equity line.


Q: What is worse on credit...showing a foreclosure or a bankruptcy? My credit is already ruined in trying to keep my home as I have used all my retirement money and such and I am still behind. Have to realize that my initial payments were $2,100 a month.....they are now 4,500 a month...should have sold a long time ago!!

A: They are equally bad.

[lcannister]

Though I feel for where you have ended up it is now right for you place the blame for the mess you end up in on anyone but YOU.

No other bank would allow us to roll in 47.49 acres in with our loan. They did with stipulation that I had to remain in the ARM for a year at which time I could refi.

and

When I attempted to refi I found that no one would do the a refi with this much property.

So you already knew no other bank would finance this property so what would change in a year that they would change their minds?

have had to endure the payment increases as well as pay reductions and layoff to where I can no longer afford my home.

None of this is your lenders fault unless they have illegally raised your payments

It has been on the market for 6 months and because of the size of the property, size of the home (5 bedroom/3.5 bath) and the location (very rural) we have had no buyers

Is it marketed properly, is it priced properly, are you using an agent etc? Pricing of property is a very important aspect of selling the property and in the current markets that can mean a price that is several thousand below purchase prices if bought in the last few years.

Good luck, I just do not like it when people come along and start a rant on their lender when they are the ones who landed themselves in their current situation.
That statement is based on the facts as you have presented them here.