What can my lender do if I am foreclosed on?

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I live in Southern California, and have a first and second loan on my home. I do not have Mortgage Insurance. My loan is with Countrywide Financial. If I am foreclosed on can they come after me for the remaining balance of the loan if the home is sold for less than what I owe on the first? Is it true that I can still be held liable for the second mortgage? What are my options in regards to foreclosure. I don’t believe a short sale is an option, as they would have to drop the price 25% in order to sell it. What if I simply make partial payments to my loans, will they still begin foreclosure proceedings?

  1. Reply
    April 29, 2011 at 9:29 pm

    In Calif. the 1st and 2nd mortgage companies can go after you for any balance due on either loan. Partial payment may not go over well on either loan…call to negotiate.

  2. Reply
    April 29, 2011 at 9:57 pm

    If you make partial payments, and they accept them, by law they cannot forclose you. You will still get the phone calls and you’ll still get the letters. Foreclosure proceedings happen after 180 days of no activity on the account. You must send them something, or, try contacting them to work out some sort of a payment schedule. Try to get the first and second loan consolidated together, if nothing else, it may lower the payment you’d need to make for both. Speaking from experience, you need to communicate with your loan company. You’d be surprised what can happen if you are honest with them. You may need to cut way back on unnessesary spending for a while, but wont it be worth it to not have this huge red flag on your credit report?

  3. Reply
    Pooh Bear Fan
    April 29, 2011 at 10:13 pm

    call them and ask for a extension on your loan and yes they will come after you for the remainder amount of loan if house don’t bring pay off other option is bankrupt the whole D**** thing good luck

  4. Reply
    Real Estate Guy
    April 29, 2011 at 10:38 pm

    First mortgage insurance (MI or PMI) doesn’t protect you if you default. It only protects the lender. So the MI company will go after the defaulted borrower.

    IN your case, please read: http://www.washingtonpost.com/wp-dyn/content/article/2008/04/11/AR2008041101914.html

  5. Reply
    April 29, 2011 at 11:15 pm

    First of all, contact them to see if they are the owners of the promissory note you signed (you must do it in writing)

    By Federal Law, If they don’t have proof of the ownership of the original document holding your signature in INK, THEY ARE NOT ENTITLED TO MAKE A CLAIM IN YOUR DEBT.


    If there is no note, then.. there is no owner.

    Since 2001, 85% of subprime lenders CANNOT provide evidence of possession of the physical note, which is the legal tool to enforce a debt.

    So, if they want to foreclose in your home, they cannot take your home away until they proof they are the owners of the note, which may be never.


  6. Reply
    John B
    April 29, 2011 at 11:40 pm

    You can try all those things but it you are about to get booted out you better start grabbing anything not nailed down and get some hammers to get the rest.

    I’m talking about taking doorknobs, windows, ceiling fans, cabinets, electrical stuff, wall outlet coverings, and even the carpet if you got nice stuff. even take the crappers.

    oh yea leave the faucet on when you leave, they hate that kind of stuff.

    if i get foreclosed on which could happen i’m going to totally trash this dump.

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