Ready to Go in AZ--Walking with all of your help!

puppyted

LoanSafe Member
Mar 31, 2011
137
0
16
Readytogo...welcome to the walking club. Hopefully it is a club that will bring you comfort! It sounds like you have thought out your decision well. Here's hoping for a quiet, uneventful walk for you.

Glad Attorney MM worked good for you..I really liked him too. He knows his stuff and wasnt judgmental at all.

Looking forward to keeping up on your journey!

Hi KFish,

Is Attorney MM located in San Diego by any chance? I am looking for a real estate attorney in the San Diego area.

Thanks!
 

Stressedout2

LoanSafe Member
Apr 2, 2011
90
0
0
Illinois
I just read your walking journey. Thank you for all your information and posts. I have been debating what would be OUR best route and these forum threads are really providing some hope and light to a very dark and stressful tunnel. Best of luck on your new life!
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
Settlement offer on 2nd Mortgage

Well I have a little more news. If you are familiar with this thread, you'll know I have/had a 2nd mortgage that is most likely recourse. I never talked with the lender during the collections period; all calls went straight to voicemail.

About 3 months after I stopped paying on the 2nd, I got an unsolicited offer from the lender to modify the loan--keeping the principal the same, but reducing the interest rate and the payment. I knew I was headed to foreclosure so I did not respond to that.

A few days ago, about 5 months after I stopped paying, I got another offer (at my new address, which I did not provide to them). This one was to settle the loan with "full and final satisfaction", and "release of lien" (if applicable). The settlement offered was around 8% of my total outstanding balance. ($4200 of $55,000)

I am not going to try to lowball them on this. While my lawyer says it could be a gray area related to it being recourse or not, why have any more hassle? I don't want this turned to a collections agency. My lender has been quite OK to work with, even during the call I made to them to state I was interested. I followed tomeason's advice and offered nothing, did not sound eager, just said I thought "I should probably end the matter", and that the funds were coming from a relative, not me. They gave me a date...mid-May...to send in the certified funds, after which they would release the lien if applicable, and report it settled and closed to the credit bureaus. And I do have that in writing, since it was all in the original letter to me.

I am happy with this. I think this site really helped me to get here too. Best of luck to all you other walkers!
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
84
48
SF Bay Area CA
readytogoza
This is good news! The settlement amount is certainly reasonable. And, most importantly, you are satisfied with it, and can afford it. I applaud you for being patient and for following the strategy. Thanks for posting your experience. And congratulations!
 

azdavid123

LoanSafe Member
Mar 5, 2011
10
0
0
That is good news.. That is my strategy as well (hoping to settle after the foreclosure) I am in the same situation but am only in my 2nd month of non payment. I just received a letter today from my HELOC stating that they are concerened and that the whole balance is due. Figure that this is just a scare tactic and will let this go unanswered as I have all their calls to date.. Thank God for Google Voice lol.
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
That is good news.. That is my strategy as well (hoping to settle after the foreclosure) I am in the same situation but am only in my 2nd month of non payment. I just received a letter today from my HELOC stating that they are concerened and that the whole balance is due. Figure that this is just a scare tactic and will let this go unanswered as I have all their calls to date.. Thank God for Google Voice lol.
AZDavid....it's a standard tactic, not really even meant to scare. Most loans/HELOC's have a provision that if you miss payments, the loan goes into default and the whole amount becomes due. They do this so they can either force foreclosure, or negotiate brand new terms for payment of your loan if you want to try to continue paying on it.

So what you received was a Notice of Default, often indicated on this site as a "NOD". Some states make this notice more important than others, putting a minimum time between NOD and foreclosure proceedings. AZ doesn't do this, it just requires a minimum of 90 days notice prior to conducting a trustee sale.

It just means it's moving along.....I'm sure it will go well for you. Best of luck!
 

azdavid123

LoanSafe Member
Mar 5, 2011
10
0
0
Do you think that the heloc will initiate the foreclosure and the trustee sale ? If they do this since they are subordinate to the primary don't they stand to get nothing out of it. And if they do then it is my understanding that the heloc would at that time become non recourse since they can't pursue a foreclosure and they come after me for a deficiency or am I way off base on this?

TIA
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
Do you think that the heloc will initiate the foreclosure and the trustee sale ? If they do this since they are subordinate to the primary don't they stand to get nothing out of it. And if they do then it is my understanding that the heloc would at that time become non recourse since they can't pursue a foreclosure and they come after me for a deficiency or am I way off base on this?

TIA
No, it's really unlikely that any 2nd would initiate foreclosure for all those reasons. You are correct that in AZ, whoever initiates foreclosure through trustee sale cannot do anything further (i.e. sue for deficiency). But they would be crazy to do that as they would get nothing.
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
Post-Foreclosure Report #2

Hey everyone...it's been almost a year since I last posted here on my thread and almost 2 years since my foreclosure in March of 2011. I was just re-reading my walking history and thought I'd offer some additional post-foreclosure thoughts.

1) I would do it all again in a heartbeat. This was the best decision for me.

2) I would have stopped paying my 2nd at the same time as my first. I had an idea that if for some reason my first lender tried a judicial foreclosure (i.e. wanted to sue me after for losses) instead of a trustee foreclosure (most common here in AZ), I could just pay the back due amount before additionally straining relations with my second lender and find some other way out of my condo mess. In the end, I just shelled out more money than necessary to the 2nd lender in the form of those additional monthly payments.

3) My credit score initially dropped from 780 to 595 after my first few missed payments. It is currently back up to 670 and I'm led to believe it will go higher after 3 full years have passed from my foreclosure. The foreclosure will remain on my record for 7 years but the "ding" from it supposedly lessens after 3, particularly if you're in good standing with everything else. We'll see if that happens for sure! I haven't really had any problems caused by my credit score.

If I can be of any assistance to anyone else please feel free to post or write.

readytogoaz
(I should change my profile name to "sogladIwalkedaz")
 

readytogoaz

LoanSafe Member
Aug 22, 2010
202
1
18
Post-Foreclosure Report #3

Wow! I can't believe so much time has passed. I inadvertently clicked on this forum I had saved in my Favorites and thought it might be worth an update!

1) Per 2013, I would still do it all again in a heartbeat. Much happier where I am now. I have not purchased anything else; I'm happy renting. I felt chained to my last place and it's hard to find somewhere here in AZ without those chains (i.e. HOA).

2) Both my 1st and 2nd loans disappeared from my credit report as required in November 2017 (7 years after first reported missed payment). My credit score hovers around 710 now. I have no missed or late payments; but what I do have are a student loan, car loan, and various credit card debt I am making progress on paying off. It's primarily that reason I'm not in upper 700's for credit. I do have to say that it is still a lingering effect of my walking. I did have two credit card lenders not affiliated with my mortgage lenders drastically reduce my credit limits and it artificially made my credit utilization high for those cards. I have them a good bit lower now, but still not under the 30% considered "good" (around 50% now, from almost 100% when they slashed my credit to match my balances).

I have to say it's really nice knowing I'm past any statute of limitation for collection and that neither loan is on my credit report anymore. I also feel very fortunate that I did this when the tax relief for those in foreclosure was still available as well.

Hang in there everyone, there's always a way out if you seek help :)
 
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