Got this letter, help me understand it...

gravymark · 04-09-2009, 10:10 PM

We received a letter from GMAC today (the lender of the 80 of the 80/20) and the letter says that due to the home being vacant they are going to send someone to change the locks and "winterize" the home. I'm in Arizona and they would know that its near 90 here if everyone that works for GMAC weren't in India, anyways......the letter also says that if I am still taking care of the home that I should call and they will cancel this work order.

I AM still taking care of the home and the yard and I am attempting to do a short sale, with no luck I might add, but should I let them change the locks and take over? I do NOT live in the house btw. Is this just another step closer to being done with the American Nightmare?

Looking for a bit of good old fashioned advice.

Thanks

The Professor · 04-10-2009, 06:16 AM

Is this one of those "non-recourse" Arizona loans? If so, and you are no longer living there, let them take over possession. It simply relieves you from potential liability to third parties who get injured on the property (potentially) and the duties associated with property maintenance.

Daniel

gravymark · 04-10-2009, 08:25 AM

Yes indeed. Or at least I hope non-recourse. I did a 80/20, the 80 with GMAC and 20 with Wells Fargo. Both were interest only ARMS but a year into the loan I did lock the 20% into a 30yr fixed but took out ZERO dollars, it was for the same exact to the penny amount that was still owed. The house was our primary residence located on a small lot. The people trying to short sale it have it listed for $79k right now with no bites, and we purchased it for $230k.

AZChick · 04-10-2009, 01:48 PM

Just allowing the bank to take possession of the house before actual foreclosure relieves the owner of liability? I did not know that, I thought you had to wait till the foreclosure...

The Professor · 04-10-2009, 06:06 PM

I spoke in too broad a fashion. Technically it doesn't relieve you from liability for 3rd party injury, but once the lender takes control they become a more visible potential defendant with deeper pockets than you. And in the memorable phrase uttered by my torts professor in school, "always go after the defendant with deep pockets."

Daniel