Have I been flagged by CW?

[theylive]

My story is pretty similar to quiet a few people on here. I live in N.E. Florida, and I bought a condo (1/1) three years ago that I'm completely upside down in and have been stuck in a declining neighborhood.
Long story short, I bought at age 22 I was deceived at every level, from the my agent to the broker who inflated all of my work and income w/out my knowledge. Over the past year and a half I've been trying desperately to get out of the condo, trying to work w/CW, list the house for sale but no agent wants to touch it as nothing has moved except foreclosures. The neighborhood is just a hood now, gang bangers and thugs have moved in and all the "slum lords" are desperate to keep their units rented out... so it's just insanity (I bought my wife a gun).

As a last resort I am seriously considering walking. CW did an investigation on my loans (80/20) and yielded that they did nothing wrong. After the investigation I asked for all orig. loan docs that I signed, and they said they couldn't get them, even though they just did an investigation and I had signed all of the docs (the phonebook) So I called them out on it and immediately got a loan mod @ 40 years on my first which I have no interest in doing...just more money in their pockets.

I have never been late nor missed a payment, but when I call CW and put in my account number, the foreclosure department picks up. Have I been flagged and do you think they are suspecting I will walk? If iI miss a payment will a foreclosure be expedited more quickly than others?

I would like to save up for a time if at all possible (rent free), but I really just want to get my wife and I out of this hell hole.

Thanks for any input and this forum is a gold mine!

[Dan Bailey]

Theylive,
Glad you found the forum and posted.
You may want to check out the "deed in lieu/walking away" thread of the forum. Prof. Shays has some excellent insight into the process of leaving the house.
Servicing companies have been known to "play hardball" and use scare tactics -"sign this or else"..it happened to me.
Good luck!

[theylive]

My story is pretty similar to quiet a few people on here. I live in N.E. Florida, and I bought a condo (1/1) three years ago that I'm completely upside down in and have been stuck in a declining neighborhood.
Long story short, I bought at age 22 I was deceived at every level, from the my agent to the broker who inflated all of my work and income w/out my knowledge. Over the past year and a half I've been trying desperately to get out of the condo, trying to work w/CW, list the house for sale but no agent wants to touch it as nothing has moved except foreclosures. The neighborhood is just a hood now, gang bangers and thugs have moved in and all the "slum lords" are desperate to keep their units rented out... so it's just insanity (I bought my wife a gun).

As a last resort I am seriously considering walking. CW did an investigation on my loans (80/20) and yielded that they did nothing wrong. After the investigation I asked for all orig. loan docs that I signed, and they said they couldn't get them, even though they just did an investigation and I had signed all of the docs (the phonebook) So I called them out on it and immediately got a loan mod @ 40 years on my first which I have no interest in doing...just more money in their pockets.

I have never been late nor missed a payment, but when I call CW and put in my account number, the foreclosure department picks up. Have I been flagged and do you think they are suspecting I will walk? If iI miss a payment will a foreclosure be expedited more quickly than others?

I would like to save up for a time if at all possible (rent free), but I really just want to get my wife and I out of this hell hole.

Thanks for any input and this forum is a gold mine!

[DeadBeat]

@Theylive - love the name. Assuming it refers to the movie - very relevant.

I was with Citi but they moved fairly quickly on me - I didn't play any games, just told them I wasn't paying until they lowered my rate. I even told them I moved out before they set the sell date. I was in MO where foreclosures go more quickly than in most states. My first missed payment was 11/08 and the sell date is 3/18/09 - so it still took over 4 months without me trying to slow it down. They did start threatening foreclosure after only missing one payment, though.

Can't guarantee it has any relevance to your situation but can only share my experience.

[The Professor]

Good morning Theylive. Your story demonstrates the unfairness that exists from state to state. Were you in California (like I am), I would have a fairly short response that would focus on the non-recourse nature of your debt, making the decision to walk an easy one. But with Florida, well things are not that simple. Sadly a number of years ago your state's legislature was influenced into not passing the sort of anti-deficiency legislation we have here in California. That effectively means your lender is free to chase you for any shortfall they may have relative to post-foreclosure losses by timely filing a legal action and seek a deficiency judgment.

The decision as to whether to pursue a deficiency judgment depends on whether the individual has any real assets worth pursuing. In Florida, getting a deficiency judtment is not hard, and in some cases, is almost automatic (with the amount being the only real issue to be determined). However as you might expect, most lenders, investors, and PMI companies don't spend the dollars to seek such judgments unless they have a reasonable expectation of recovery. Average Joe homeowner is not a high-percentage candidate, but real estate investors are another story. If someone has been through a completed foreclosure and owns other real estate, they should be very concerned. The statute of limitations for pursuit is generally 1 year (there are exceptions) and the judgement lien can stand for 7 years, but can be renewed for more (in FL). The judgment lien can be recorded in any Florida county and will attach to any real property located in that county. Additionally because of sister state judgment statutes, a judgment can be obtained in other states for this debt through a relatively simple process.

Believe me I wish I had better news, but I think the good news is that being informed is much better than guessing what will happen. I do suspect that uncollectable debts (perhaps like yours if your home is foreclosed) will find their way into the hands of collection agencies skilled in this sort of collection action. So do expect to be contacted after the foreclosure.


Daniel

[theylive]

Thank you for the responses, I don't have much in the way of assets. If I walk and they come after me for collections, is it just what the condo doesn't bring after the foreclosure (the difference) and do they tack on all kinds of fees? Could I wave the BK card in front of them threaten they'll get nothing, or try and settle for pennies on the dollar?

I spoke to a lawyer and He said because Fl. is so backed up w/foreclosures that the chance of a DJ is slim, but they have 5 years to come after you.
I'm really struggling on a decision to make, as I just want to get my wife and I the heck out of the "hood"...thanks again

[theylive]

I have an 80/20 w/CW, a conversion condo that I paid $107,500 for three years ago in NE FL that is my primary residence. Nothing has sold in last year in my complex (comps listed @ in the mid $70's) except foreclosures rumored going in the $40's. Long story short it's turned into a less than desirable neighborhood. I want to walk, spoke to an attorney, and He said CW "might" write off the first loan and come after me for the second.

What I'm worried about is say it sells for $45k, are they going to come after me for the $62,500? -The difference from $107,500? I know they have 5 years to do so, if they do come after me, what can I do, besides waving the BK in their faces? Thanks!

[Enough Already]

Theylive,

We're in FL and concerned about the possibility of a deficiency judgement too. As Prof Shays said, the morgage lender will likely sell the debt to a collections company, and all they can really do is try to collect. From everything I've heard (on this site and from talking to a couple of attorneys) if the mortgage co or a collections co try to collect you will like be able to settle for cents on the dollar.
Also, in FL they can't do much to you. For example, if they try to garnish your wages they can't do it if you're the head of household. If your wife works they can only garnish 25% of her after tax income.
Anyway, I would strongly suggest you talk to an attorney yourself, but for us it is a lot less scary now that we understand what they can and can't do to collect.

Good luck to you, and please keep us posted.