"Negotiate with your lender" is advised here a lot, and I am not sure what that means.![]()
I'm thinking of letting go of my condo that has negative equity and has first and second (heloc) loans. How does one "negotiate with the lender"?
"Negotiate with your lender" is advised here a lot, and I am not sure what that means.![]()
I'm thinking of letting go of my condo that has negative equity and has first and second (heloc) loans. How does one "negotiate with the lender"?
You contact your lender and see what, if anything, they can do for you.
What do you want your lender to do?
I have successfully completed a short sale on my condo last year in which it was an 80/20. $216k first (30 year fixed) and $54k second (heloc 2 yr ARM) for a grand total of 100% financing, $270k loan, $270k value.
I ended up selling it a year later with the first getting completely paid off, and the second only receiving $2400 for their $54k loan. Here's what I told them...
"I want a short sale"
"why?...you're current on your mortgage"
"I bought this condo for my fiance' and I, which didn't work out because of a broken engagement, I work as a realtor on a commission only basis and currently am in a situation in which I am relying on my reserves. You guys have two options,
1) you can continue to get my monthly payment til I run out of reserves (2 months) and then you won't get a payment, and you will continue to be without a payment until you can forclose on me, and then you'll have 20-30% lost in the auction of the home, and an additional 5-10% lost in attorney fees, back taxes, and the missed payments of the first mortgage as well.
2) accept a short sale..."
They ended up taking the small payoff, and 1099ing me for the difference. Which is protected in the Mortgage Protection Act of 2007 that Bush enacted last year...