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Ceterus / Fannie Mae Foreclosure - Asset protection

Discussion in 'Ask the Attorneys?' started by jmtom11, Feb 2, 2012.

  1. jmtom11

    jmtom11 LoanSafe Member

    My story in a nutshell
    Myself and a Friend bought a townhouse together in 2005, paid the mortgage dutifully for 4 years then both of us lost our well paying jobs around the same time.

    I found a new job fairly quick (3months) and was living out of state, he stopped paying the mortgage.

    Well it has been about 2 yrs with out a mortgage payment and i am pretty sure Forcolsure is coming. Based on previous sales in the area i am thinking the house will sell for around 60k (we owe 160). Ceterus told me they would do a deed in lieu if we satisfied the 2nd mortgage with chase- which I did. Now to proceed due to new regs they want bank statements, w2 etc... I made over 100k last year and really just want to get rid of the property, i would offer them cash if that would work (it worked for the 2nd) but i also feel like doing that would let them know there is blood.

    Wondering if I should just keep quiet and see what happens?

    I want to be proactive and protect my assets....

    Things I have done :
    Gotten Married, all my bank accounts are tennants of the entirety accounts and have been for over a year.
    Maxed out my retirement (roth / 401) accounts so that as much money as possible is going into them.
    We bought a new house, she is primary on the deed and the loan but it is our homestead.
    My company provides me a car so I do not own one.

    I have about 50K in bank accounts - i was thinking one option would be to stick 40k of it in a no load annuity and just **** it up and eat the 10% gov't excise tax when I take it out down the road.

    I was also thinking of having my company reduce my current pay to show lower income.

    Basically, I think it would be easier to settle with a collection agency down the road than it would be to convince fannie mae to do anything about our loan.
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi jmtom11,


    If you do go the DIL route you will be asked for financials as you are, the DIL will also reflect on your credit just as harshly as a foreclosure. With a foreclosure, you wouldn't need to jump through all of these hoops or show the financials. There is a good thread discussion on the differences here;

    http://www.loansafe.org/forum/short-sale-outpost/43265-ss-vs-dil-vs-fc-comparison.html
  3. jmtom11

    jmtom11 LoanSafe Member

    Thanks for the reply. Yes last thing i want to do is show financials... the loan is relatively small in the grand scheme of things. i think it is best to just sit quiet and wait it out.

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