Alright folks, I’ve done more than my fair share of reading posts on this site, searching the internet and have even met with an attorneyto discuss the particulars of foreclosing on my home. However, I’m scared to death of the possibility of a judicial foreclosure.
Just looking for some additional advice from those who have similar situations as myself or just in the know. Here are the facts…
My wife lost her job this month (which we knew was coming) and had a baby last year as a result we can no longer pay our mortgage. We’re currently applying for a loan mod, but that’s a separate thread.
I live in California and occupy a single family home whichis my primary residence. I have twoloans (80/15); $279K balance on the 1st mortgage with Wells Fargo (purchasemoney/Non-Recourse) and the second with USAA (refi/recourse) for $50K. The property is worth about $200K at best.
We’re 60 days late and nearing 90 days on the 16thof this month on both loans. I’ve received an acceleration notice a few weeksago from WF and have been advised if I want a shot at a loan mod I need to be no delinquent than 60 days.
My question is simply; since the first (WF) is a purchase money loan and will probable pursue a non-judicial foreclosure (power of sale) how likely would it be for the second to step in to stop the process.
Is it likely/possible the Second will cure the Wells Fargo arrears and charge me for it (otherwise, Wells Fargo will foreclose, thereby extinguishing Second Place's second deed of trust). If I fail to pay SecondPlace for its "service" of curing the Wells Fargo arrears or become current with them as well, will/can USAA pursue a judicial-foreclose on the second deed, then payoff the first and then come after me for the entire deficiency balance.
I do have two other rental properties and have a combinede quity of about $140K. The area I’m in is glutted with foreclosure making theirsale not possible at what should be fair market value.
Any advice would be appreciated…