In foreclosure - MERS ??

[Digowon]

I'll try to make a long story short.
My wife & I were both in danger of losing our jobs in CT. I was offered a great job in another state, and we've since moved. If we'd stayed I would have faced a significant pay cut, or possible layoff. We did what we thought was in our best interests.

Our home in CT had already been on the market for nearly 1.5 years with no offers. In this time we'd dropped the price by more than 120K. It is an antique home, and would have required additonal cash to have it up to code as a rental proerty. We also didn't like the aspect of being non-resident landlords.

With the move, we knew we would have a problem keeping up the mtg payments in CT while paying for a rental home, expenses, etc. Our credit was outsdtanding(near 800), and we'd NEVER been late.

Once we knew our options, we contacted our lenders for the 1st & 2nd, and explained our situation. The response we got was essentially - "We can't help you until you're behind by at least a month."

After several months, repeated refusals at any options we tried to take advantage of, we're now in asset recovery on the 1st and the 2nd is moving in that direction. The home was appraised in 1/2009 at about 5K less than we owe - this means that the first is covered, and the second will be short less than 10K.




I've read several different things about CT, and would like to know if anyone can clarify a couple things:

• Is it true that CT uses the appraised home value as the measure against deficiency?
• If appraised value is used - will this also be applied to the 2nd - or does that become completely unsecured and fall to me? I know that the second will have to be included in the foreclosure process by the 1st, and I expect that the 1st will need to give the 2nd some of the extra equity after the judgement.

Thnaks in advance!

[Dan Bailey]

Digowon,
Glad you found the forum and posted. You may have already read this, but here is a link to a quick summary of CT forclosure law :Connecticut Foreclosure Law

Being that forclosure law interpretaion is a legal matter, it may be best to ask an attorney familiar with it in CT for specific answers. No-one on the forum is qualified to interpret law.

[Digowon]

I'm in foreclosure and notice that the complaint includes a $$ amount listed in MERS that I am unfamiliar with. Is it possible that it's left over from refi?

We refinanced into a 1st & 2nd - but this 3rd $$ amount is significant, and we don't know why it's listed. I believe it was paid of by the refi.

Is it normal to see notes that are already paid show up via MERS?

[Dan Bailey]

Digowon,
Without seeing the paperwork, it is hard to discern what any amounts would be for.
Is it possible you had a balloon payment due at the end of the mortgage term?