ACS first mortgage and SPS second, 2 months behind and walking away - Loan Modification Forum

HighInterestNJ · 02-27-2009, 12:45 PM

Hi,

I've been reading the forum for a few months and find the information helpful and useful. My story is quite complicated but I could use some advice on what to do. In 2006, we were set to close on the sale of our house in New York when we found out a week before closing that there were violations on the title dating back to 1987(before we bought the home). Long story short, we were unable to sell the house and no-one took responsibility for selling us a house with a defective title.
Were set to make about 200K on the sale which we were going to use as a downpayment on our new home in New Jersey 565,000. We were already in contract and had put money down on that house so, we went ahead with two mortgages on the house. 452K (7.4%) and 95K(11%) on the second. Thinking that we would be able to sell the house in NY, pay off the second mortgage and refinance.
Well... we couldn't get anyone to help with the title and found that fixing it could cost over 20K. So we rented out the house and used the income to supplement our own to pay the mortgage on the house in NJ. The crisis got worse and worse, and this house lost value, we are now about 100K underwater, and so we couldn't refinance, plus we've been using credit cards to pay for expenses like fixing up the house in NY and attempting to remedy the title. The final straw is that the tenants are not paying rent anymore.
So, at present, we stopped paying the mortgage here to pay back some family loans which have been long overdue. The house in NY is on the market, but we have no real interest, plus we've lost 100K in equity there. We owe over 50K in credit card debt. We are in the process of waiting for ACS to review our request for a modification. SPS said they would take 15K in a short sale, but we want to keep the house. None of the programs I've heard about seem to help people who own more than one house, but I'm wondering if anyone has any advic
e to offer on what we can do with either home, or what to do next.

Thanks.

HighInterestNJ · 06-01-2009, 11:20 AM

Hi,

We have been trying to negotiate with our second mortgage SPS for a short pay. When we initially fell behing they told us they could not do a loan modification, but would accept $20,000 from a short sale - we currently owe about $100K. We are not able to sell the house for anywhere near what we owe, so we are trying to get them to accept a sum of money from us ($12,000). Well it seems like they have agreed to this. My only concern is that the documents say that we need to wire the money to their account and then they will send us the discharge documents. Is this how it works? I'd hate to get all that money to them and then they just apply it to what we owe... has anyone had any experience with this process?

02-27-2009, 12:45 PM	#1 (permalink)
HighInterestNJ Member Join Date: Aug 2008 Posts: 7 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	ACS first mortgage and SPS second, 2 months behind and walking away Hi, I've been reading the forum for a few months and find the information helpful and useful. My story is quite complicated but I could use some advice on what to do. In 2006, we were set to close on the sale of our house in New York when we found out a week before closing that there were violations on the title dating back to 1987(before we bought the home). Long story short, we were unable to sell the house and no-one took responsibility for selling us a house with a defective title. Were set to make about 200K on the sale which we were going to use as a downpayment on our new home in New Jersey 565,000. We were already in contract and had put money down on that house so, we went ahead with two mortgages on the house. 452K (7.4%) and 95K(11%) on the second. Thinking that we would be able to sell the house in NY, pay off the second mortgage and refinance. Well... we couldn't get anyone to help with the title and found that fixing it could cost over 20K. So we rented out the house and used the income to supplement our own to pay the mortgage on the house in NJ. The crisis got worse and worse, and this house lost value, we are now about 100K underwater, and so we couldn't refinance, plus we've been using credit cards to pay for expenses like fixing up the house in NY and attempting to remedy the title. The final straw is that the tenants are not paying rent anymore. So, at present, we stopped paying the mortgage here to pay back some family loans which have been long overdue. The house in NY is on the market, but we have no real interest, plus we've lost 100K in equity there. We owe over 50K in credit card debt. We are in the process of waiting for ACS to review our request for a modification. SPS said they would take 15K in a short sale, but we want to keep the house. None of the programs I've heard about seem to help people who own more than one house, but I'm wondering if anyone has any advic e to offer on what we can do with either home, or what to do next. Thanks.

06-01-2009, 11:20 AM	#2 (permalink)
HighInterestNJ Member Join Date: Aug 2008 Posts: 7 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	SPS short pay process Hi, We have been trying to negotiate with our second mortgage SPS for a short pay. When we initially fell behing they told us they could not do a loan modification, but would accept $20,000 from a short sale - we currently owe about $100K. We are not able to sell the house for anywhere near what we owe, so we are trying to get them to accept a sum of money from us ($12,000). Well it seems like they have agreed to this. My only concern is that the documents say that we need to wire the money to their account and then they will send us the discharge documents. Is this how it works? I'd hate to get all that money to them and then they just apply it to what we owe... has anyone had any experience with this process?

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode