Strategic default - San Diego, CA

[sid123]

Hello,
I am documenting my strategic default..... please help me with the process. I am not fully aware of the process.

1st Loan (Aurora) - first payment missed august.
2nd loan (BOfA) - first payment missed july.

Both loans are purchase money..... NEVER REFI'd.

Today I got a "Notice to Accelarate" from BOfA.
Heard nothing from the 1st loan yet.

What does this notice mean ? Are they moving ahead with the foreclosure ?
BOfA is a 2nd junior loan, which is completely wiped out due to low house value.
Can BOfA foreclose on the property ? I thought only the first loan can foreclose on the property and then the junior would be wiped out.
Please let me know.

Thank You!

[TomEason]

Hello,
I am documenting my strategic default..... please help me with the process. I am not fully aware of the process.

1st Loan (Aurora) - first payment missed august.
2nd loan (BOfA) - first payment missed july.

Both loans are purchase money..... NEVER REFI'd.

Today I got a "Notice to Accelarate" from BOfA.
Heard nothing from the 1st loan yet.

What does this notice mean ? Are they moving ahead with the foreclosure ?
BOfA is a 2nd junior loan, which is completely wiped out due to low house value.
Can BOfA foreclose on the property ? I thought only the first loan can foreclose on the property and then the junior would be wiped out.
Please let me know.

Thank You!

sid123

Thanks for your post. Walking will be relatively painless for you. Although either lender can FC, unless the 2nd lender is clearly in the money, they won't FC.

But who cares? Neither lender can seek a deficiency since both are purchase money and hence non-recourse.

You're fortunate to have the protections of our state's statutes.

[enough_is_enough]

Hey sid123, TomEason is absolutely correct and he has provided many valuable informations on my thread in the foreclosure forum. You and I are pretty much the same since all loans are purchasing money.
I got 2-4 calls a day (just cell phone, if include home would be around 8) from my 2nd, and less than 3 calls a day from my first. if you don't want to deal with the headache, then send them a C&D letter which also provided by some members as well.
it will get easier. and if you are not in a hurry, vist the Hamspter Wheel thread for ways to delay the FC process.
Good luck!

[sid123]

sid123

Thanks for your post. Walking will be relatively painless for you. Although either lender can FC, unless the 2nd lender is clearly in the money, they won't FC.

But who cares? Neither lender can seek a deficiency since both are purchase money and hence non-recourse.

You're fortunate to have the protections of our state's statutes.

Should I call them and try to do a SS. I do not think I would qualify based on my income .... or should I just let it go to foreclosure.
What should be my next steps..... just ignore the BOfA (junior loan) "notice to accelerate" or should I contact them and let them know that there is a 1st loan with Aurora ?

[TomEason]

sid123

Thanks for your post. Your next move is simple - do nothing. That is, unless you choose to execute some delaying moves advocated at The HAMPster Wheel Game thread.

Ignore both BOA and Aurora, don't communicate with either lender ever again

If it were me, I wouldn't even consider a SS. With a FC, you will stay in your home much longer, rent free, i.e. without making any loan payments or property tax payments. You can save lots of $$ in so doing. For tips on how to extend your stay for as long as possible, you might visit this thread.

www.loansafe.org/forum/chase-mortgage-tell-us-your-chase-story/39095-hampster-wheel-game-31.html

Good luck!

[sid123]

sid123

Thanks for your post. Your next move is simple - do nothing. That is, unless you choose to execute some delaying moves advocated at The HAMPster Wheel Game thread.

Ignore both BOA and Aurora, don't communicate with either lender ever again

If it were me, I wouldn't even consider a SS. With a FC, you will stay in your home much longer, rent free, i.e. without making any loan payments or property tax payments. You can save lots of $$ in so doing. For tips on how to extend your stay for as long as possible, you might visit this thread.

www.loansafe.org/forum/chase-mortgage-tell-us-your-chase-story/39095-hampster-wheel-game-31.html

Good luck!

Hi Tom,
Thanks for the reply!
I do not wish to extend the FC. I have already moved out of the house. Now we just want to get rid of the house.
Would you recommend me considering a SS or just wait for FC ?

Regards,
Sid

[TomEason]

sid123

Thanks for your post. It might have helped shorten our exchange if you had offered that info initially, as my recommendation would have been different.

Here's what I would do. I'd rent out the house and enjoy the easy positive cash flow rental income for the many months the FC will likely take.

[sid123]

The bank just got back to us saying we do not qualify for HAFA relocation assistance and they will proceed with traditional SS. They are asking for a letter from us stating we are OK with it.

I found the following on HAFA website:
In either case, HAFA offers benefits that make the transition as favorable as possible:

• You can get free advice from HUD-approved housing counselors and licensed real estate professionals.
• Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls "short" of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
• In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price.
• HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
• When you close, HAFA provides $3,000 in relocation assistance.

My concern is : If we go for a traditional SS, could the bank come after us at a later time for the difference. Seems like they could based on the above information. The house is located is Southern California and it is a purchase loan - never refi'd.

Appreciate all your input. I am lost right now.