Wayne

[mattw]

I reside in FL and had a log cabin built in TN as an investment/2nd home.
Citimortgage obtained my loan after it was completed in Dec 2008. With the economy I couldn't sell it as an investment. So I wanted to rent it out on a nightly basis ( which is feasible in the high tourist area it is in). I could not afford the 7% interest rate on the loan and the cabin is appraised for 30k less than what I owe. I have tried to work with citimortgage since they have obtained the loan in Dec and got as far as them putting me in a forbearance program. After they set me up in the program which they said I had to do for Fannie May to modify the loan now they say the rules have changed and Fannie May won't do modifications on 2nd homes. I've wasted sending money to citimortgage on a loan that can't be modified so I'm trying to find out the best way to get out of this mess. Thanks to Citimortgage my credit is already messed up and I'm not so worried about my credit for 3 to 7 years my principle house in FL is almost paid off and my vehicles are fairly new. The other thing I need to mention is the Cabin and one other small rental house I have in TN is in my name only everything else I own is in both my name and my wife's. I don't know if that would make a difference in a bankruptcy or not? Also Citimortgage said they would not take the deed in lieu of foreclosure, and I'm concerned of the taxes I would have to pay on the deficiency of a short sale. So what are your suggestions. Thanks Wayne

[Enough Already]

Hi Wayne,

The best advice I can give you is to take a look at the deed in lieu section of this forum. Getting a deed in lieu is almost a miracle, but there is a lot of discussion of walking away, and mortgage balance debt/taxes/collections etc. Here's a link: Deed in Lieu of Foreclosure - Do You Need Help to Walk Away? - Loan Modification Forum - LoanSafe.org

I spent a lot of time looking through that end of the forum and learned a lot about my options. Good luck!

PS: I'm not an attorney, that's just my $.02.

[Marshall Rosenbach Esq.]

Wayne - you should consult with a lawyer who specializes in bankruptcies. Did Citi tell you they were rejecting your modification outright? Or they would consider you, just not under the MHA program? A deed in lieu of foreclosure is generally not available until after you try to short sell your home for a period of time.