Loans, Debt & Credit - View Single Post - Walking Away in Oregon -- What am I missing...?

Kick_Me_Out · 08-05-2009, 02:58 PM

So -- Here is where I am at now. I have still not sent any payments to the first or the second, and surprisingly, other than the typical "we are going to foreclose" letters, I haven't heard anything from either the first, or the second.

The new renters did move in to one side of the duplex -- now that property is only costing me $900 per month.

I took the three payments that I have missed, and used them to pay off two of the three years worth of back taxes on Property #3 and #4. At least there won't be any tax liens on those for a while.

Credit cards have continued to slash my limits down to the current balances, except Chase. Not sure why, but they have come down a little bit on my credit limits, but not as hard as BofA, Citibank, Discover, and even my Lowe's card.

I have decided to try one other thing with both Mortgages to see what happens. I have filled out the form on Litton's website about Financial Hardship and am sending them a letter today. I explained that my wife is still unemployed and we can't make our payments. I explained that we purchased for $275,000 and that a realtor recently told me that it was probably only worth $120,000. I have asked very bluntly to reduce the principle to $130,000 and change over my loan to a 30 year fixed at about 5.5%. I doubt they will do it, but I figure that every time I get a letter from them, I will resend that offer.

As for the second -- I'll ask for opinions... From what I have gathered from LoanSafe, is that in Oregon if the First forecloses, the second can still come after me. So, I think that I will just write up an offer to buy it out at 5 cents on the dollar and send it off. Every time that I get a letter from them I will resend it. The worst they can do is say no, and maybe counter offer.

I guess my worst case scenario would be that I get a Juicy Refi from the first, and the second is still hanging out on there. And then it still would not be worthwhile to stay. But if I don't get rid of them, they will be there whether or not I walk or not, right?

What if I get the first to refi, and then continue to ignore the second? Then as soon as (if!) property values come back a bit, they would have better standing to Foreclose, right?

08-05-2009, 02:58 PM	#3 (permalink)
Kick_Me_Out Member Join Date: Jul 2009 Posts: 16 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Walking Away in Oregon -- What am I missing...? So -- Here is where I am at now. I have still not sent any payments to the first or the second, and surprisingly, other than the typical "we are going to foreclose" letters, I haven't heard anything from either the first, or the second. The new renters did move in to one side of the duplex -- now that property is only costing me $900 per month. I took the three payments that I have missed, and used them to pay off two of the three years worth of back taxes on Property #3 and #4. At least there won't be any tax liens on those for a while. Credit cards have continued to slash my limits down to the current balances, except Chase. Not sure why, but they have come down a little bit on my credit limits, but not as hard as BofA, Citibank, Discover, and even my Lowe's card. I have decided to try one other thing with both Mortgages to see what happens. I have filled out the form on Litton's website about Financial Hardship and am sending them a letter today. I explained that my wife is still unemployed and we can't make our payments. I explained that we purchased for $275,000 and that a realtor recently told me that it was probably only worth $120,000. I have asked very bluntly to reduce the principle to $130,000 and change over my loan to a 30 year fixed at about 5.5%. I doubt they will do it, but I figure that every time I get a letter from them, I will resend that offer. As for the second -- I'll ask for opinions... From what I have gathered from LoanSafe, is that in Oregon if the First forecloses, the second can still come after me. So, I think that I will just write up an offer to buy it out at 5 cents on the dollar and send it off. Every time that I get a letter from them I will resend it. The worst they can do is say no, and maybe counter offer. I guess my worst case scenario would be that I get a Juicy Refi from the first, and the second is still hanging out on there. And then it still would not be worthwhile to stay. But if I don't get rid of them, they will be there whether or not I walk or not, right? What if I get the first to refi, and then continue to ignore the second? Then as soon as (if!) property values come back a bit, they would have better standing to Foreclose, right?