Home owner, now rented, deficiency? - Loan Modification Forum

Christine · 02-17-2009, 08:15 PM

I'm trying to find out two things:
1. Can Countrywide come after me for the deficiency amount through a judicial judgement?
2. Will I be able to prove I'm insolvent for the year?
Details:
Home purchased 11/2004
Loan was purchase money - never refinanced, pulled home equity $
I lived in the house until 2006.
Tried to sell it couldn't, have had tenants in the house for the past 2 years.
I pay $800 out of my pocket for this house - rent does not cover payment (includes principal, interest, insurance, taxes)
I've called and asked if I could get a loan modification, no luck. It is not currently my primary residence, and my loan is at 6% for 30 years.
I've missed my first payment on January 1, 2009.

On the Deed of Trust, under the Transfer of rights in the property, there is a statement "The Security Instrument secures to Lender: (i.) the repayment of the loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreemetns under the Security Instrument and the Note. For this purpose, Broorower irrevocably grands and conveys to Trustee, in trust, with power of sale, the following described property, ADDRESS"

Does this cover me in the Judicial Foreclosures in California - Code of Civil Procedure Section 580(a) -- Anti-Deficiency Law not allowing the bank to come after me for the deficiency amount?
Insolvency - The amount on the loan is $220K the house might sell for $80K. My current house has a loan of $260K worth about $260. 1 car owe 11K worth 15K, a couple of credit cards at $5,000.
I was told based on my 2008 taxes, if the house sold for $80K I would get a 1099C for about $32K

I'm trying to short sale the house, but my agent wants me to get a termite inspection fix the backyard up and have someone clean the gutters. Is it worth it for me to do this? If it doesn't sell in 3 months, I'm going to ask for a deed-in-lieu of. The only reason I'm going through the short sale and DIL is because I don't want to effect my credit as bad. However; I already have the house I'm going to live in for 10 years + and a new car. Is the short sale worth it? Does it differ on the credit between Short Sale, DIL, or Foreclosure?

Thanks for reading and offering advice.
Christine

02-17-2009, 08:15 PM	#1 (permalink)
Christine Member Join Date: Feb 2009 Posts: 5 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Home owner, now rented, deficiency? I'm trying to find out two things: 1. Can Countrywide come after me for the deficiency amount through a judicial judgement? 2. Will I be able to prove I'm insolvent for the year? Details: Home purchased 11/2004 Loan was purchase money - never refinanced, pulled home equity $ I lived in the house until 2006. Tried to sell it couldn't, have had tenants in the house for the past 2 years. I pay $800 out of my pocket for this house - rent does not cover payment (includes principal, interest, insurance, taxes) I've called and asked if I could get a loan modification, no luck. It is not currently my primary residence, and my loan is at 6% for 30 years. I've missed my first payment on January 1, 2009. On the Deed of Trust, under the Transfer of rights in the property, there is a statement "The Security Instrument secures to Lender: (i.) the repayment of the loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreemetns under the Security Instrument and the Note. For this purpose, Broorower irrevocably grands and conveys to Trustee, in trust, with power of sale, the following described property, ADDRESS" Does this cover me in the Judicial Foreclosures in California - Code of Civil Procedure Section 580(a) -- Anti-Deficiency Law not allowing the bank to come after me for the deficiency amount? Insolvency - The amount on the loan is $220K the house might sell for $80K. My current house has a loan of $260K worth about $260. 1 car owe 11K worth 15K, a couple of credit cards at $5,000. I was told based on my 2008 taxes, if the house sold for $80K I would get a 1099C for about $32K I'm trying to short sale the house, but my agent wants me to get a termite inspection fix the backyard up and have someone clean the gutters. Is it worth it for me to do this? If it doesn't sell in 3 months, I'm going to ask for a deed-in-lieu of. The only reason I'm going through the short sale and DIL is because I don't want to effect my credit as bad. However; I already have the house I'm going to live in for 10 years + and a new car. Is the short sale worth it? Does it differ on the credit between Short Sale, DIL, or Foreclosure? Thanks for reading and offering advice. Christine

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