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AZ Foreclosure, 2nd Home- BofA Holds both mortgages

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What is the name of your state (only U.S. law)? Arizona, Community Property State.

Complicated mess. (I'll attempt to stick to facts, I have a tendency for tangents and getting sappy)

1. Own 1 house in Phoenix. Youngest son lives there + 2 renters.
--->Mortgage held by BofA as FHA. Mortgage is current @ $1368/month. Balance on mortgage is 202K. BOTH my husband and I are on the mortgage.

2. Own 2nd house in Tucson. Unfortunately property is 3.1 acres**, though house is only 900 SF. This house is where we wanted to retire.
--->Mortgage held by BofA as Conventional. Mortgage current @$1693/month. Balance on mortgage is 193K. ONLY HUSBAND on mortgage loan.

3. Own 40 acres of raw land. Paid off, have Deed. Have previously tried for 18 months to sell land. Not selling.

We've owned house #1 since 2002. Refi'd in 2006.
We've owned house #2 since May 2007

January 2007 Husband received job offer in Tucson, bought Tucson house in May 2007.

February 2008 - Husband got notice he would be getting laid off, company gave him time to find another job. He did - all the way across the country in PA. (Ironically 2 miles from my parents home). We decided to give PA a try. (my dad has parkinson's and will lose his eyesight in about 8 months now due to other illnesses, so spending time with my family was precious - though not financially wise).

April 2008 - We put House #2 in Tucson up for sale - no offers, no lookers, nothing for 2 years.

April 2008 & June 2010 we did our best to pay mortgage on House #2, never late, always on time. We also paid rent in PA - so things were tough and our savings account went down to less than 1000.

June 2010 - Husband receives job offer back in Phoenix. Same $$ amount. We decided to make the move back to our TUCSON house. Our thinking was at least we were HERE in AZ if things went from "living" to just "existing/survival". As our Phoenix house is paying for itself with renters, the LAST solution was to move up to our Phoenix house, we can pay everything there with just my salary.

Sept. 2010 - Husband gets notice he is going to Parttime. This is temporary, heck, even the Vice President went from salary down to hourly and had to go down to 3 days a week. The company has 3.8 million in bids out there waiting for "we got the job" confirmations. If they get even 10% of these bids, my husband goes back to Full Time.

PROBLEMS:

1. Bank of America: BofA holds BOTH mortgages - which are direct withdraw on the 1st of each month. BofA holds our car loan (bal is 2300, and will be paid off 18 months early). We have 2 checking (personal & rental), 1 savings, 3 credit cards (combined balances 12K).

QUESTION #1: Any thoughts on how foreclosing on our House in Tucson will affect our other BofA accounts? (we have already opened up an AZ Checking & Savings account to start using).

QUESTION #2: Since the Tucson Mortgage is ONLY in my husband's name, can (not will - BofA may try to though) BofA do anything with our Phoenix house mortgage? I'm thinking along the lines of attempting to attach the Tucson mortgage to the Phoenix mortgage...or anything else?

QUESTION #3: What are possible outcomes of our 40 acres?

I have a few other questions, but they deal with our credit cards, so I'll post those over in the Credit Cards/Banking forums.

**Anti-Deficiency Judgments not done on less than 2.5 acres in AZ from what I could understand on the laws.

It's very difficult to keep this in perspective and not keep this Tucson house, how some folks can move from "emotional attachment" to "it's just business" and walk away is far from my grasp. Bankruptcy is not an option, I do Not.Like.This.One.Bit, not paying our obligations and trying to remain detached.

Thank you in advance to any who post/respond.

KLH
 


HomeGuru

Senior Member
What is the name of your state (only U.S. law)? Arizona, Community Property State.

Complicated mess. (I'll attempt to stick to facts, I have a tendency for tangents and getting sappy)

1. Own 1 house in Phoenix. Youngest son lives there + 2 renters.
--->Mortgage held by BofA as FHA. Mortgage is current @ $1368/month. Balance on mortgage is 202K. BOTH my husband and I are on the mortgage.

2. Own 2nd house in Tucson. Unfortunately property is 3.1 acres**, though house is only 900 SF. This house is where we wanted to retire.
--->Mortgage held by BofA as Conventional. Mortgage current @$1693/month. Balance on mortgage is 193K. ONLY HUSBAND on mortgage loan.

3. Own 40 acres of raw land. Paid off, have Deed. Have previously tried for 18 months to sell land. Not selling.

We've owned house #1 since 2002. Refi'd in 2006.
We've owned house #2 since May 2007

January 2007 Husband received job offer in Tucson, bought Tucson house in May 2007.

February 2008 - Husband got notice he would be getting laid off, company gave him time to find another job. He did - all the way across the country in PA. (Ironically 2 miles from my parents home). We decided to give PA a try. (my dad has parkinson's and will lose his eyesight in about 8 months now due to other illnesses, so spending time with my family was precious - though not financially wise).

April 2008 - We put House #2 in Tucson up for sale - no offers, no lookers, nothing for 2 years.

April 2008 & June 2010 we did our best to pay mortgage on House #2, never late, always on time. We also paid rent in PA - so things were tough and our savings account went down to less than 1000.

June 2010 - Husband receives job offer back in Phoenix. Same $$ amount. We decided to make the move back to our TUCSON house. Our thinking was at least we were HERE in AZ if things went from "living" to just "existing/survival". As our Phoenix house is paying for itself with renters, the LAST solution was to move up to our Phoenix house, we can pay everything there with just my salary.

Sept. 2010 - Husband gets notice he is going to Parttime. This is temporary, heck, even the Vice President went from salary down to hourly and had to go down to 3 days a week. The company has 3.8 million in bids out there waiting for "we got the job" confirmations. If they get even 10% of these bids, my husband goes back to Full Time.

PROBLEMS:

1. Bank of America: BofA holds BOTH mortgages - which are direct withdraw on the 1st of each month. BofA holds our car loan (bal is 2300, and will be paid off 18 months early). We have 2 checking (personal & rental), 1 savings, 3 credit cards (combined balances 12K).

QUESTION #1: Any thoughts on how foreclosing on our House in Tucson will affect our other BofA accounts? (we have already opened up an AZ Checking & Savings account to start using).

QUESTION #2: Since the Tucson Mortgage is ONLY in my husband's name, can (not will - BofA may try to though) BofA do anything with our Phoenix house mortgage? I'm thinking along the lines of attempting to attach the Tucson mortgage to the Phoenix mortgage...or anything else?

QUESTION #3: What are possible outcomes of our 40 acres?

I have a few other questions, but they deal with our credit cards, so I'll post those over in the Credit Cards/Banking forums.

**Anti-Deficiency Judgments not done on less than 2.5 acres in AZ from what I could understand on the laws.

It's very difficult to keep this in perspective and not keep this Tucson house, how some folks can move from "emotional attachment" to "it's just business" and walk away is far from my grasp. Bankruptcy is not an option, I do Not.Like.This.One.Bit, not paying our obligations and trying to remain detached.

Thank you in advance to any who post/respond.

KLH


**A: at what point in time do you think it prudent to hire an attorney?
 
HomeGuru,

IF I could figure out how to come up with $$ to pay for an attorney, that is the priority on the list. How does a person find an attorney who isn't going to tell us it looks like bankruptcy is the only option?

We do not want to file bankruptcy. We wish to completely pay our existing CC's, get the car loan paid off, continue paying on House #1 in Phoenix. I guess that is probably just hopeful / wishful thinking, aye?

I know at least the my salary pays for the mortgage, utilities, insurance & incidentals up at the Phoenix house. (with keeping just my son & his girlfriend as renters, which they agreed to stay if we have to move back there). My husband working part-time - til he goes back to full time - will pay the credit cards we have.

I wish I could find the $$ to pay for an attorney. I don't even have anyone to borrow it from at this point - and we've made our CC's unavailable to use putting ourselves on an extreme survival mode only.

I think we just tried too long to hold on to this house in Tucson - having it on the market for 2 years and not even any lookie-see's. With each mortgage payment we made, we kept falling, losing inches in the hole.

With your expertise here - do you have any thoughts on how things may/may not play out? I understand nothing is definite, every situation is different, every "what if" can turn out just the opposite.

Like I said, if I had the $$ handy, finding an attorney would be the priority.

Thank you for taking the time to reply.

KLH
 

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