Conserve your cash and energy

InnoVest Resource Management's
Foreclosure Forum

Home

Discussion Board

"Hands-On" Training

Title Holding Trust

Speaking Schedule

Store

Foreclosure Fundamentals

Code References

50 State Foreclosure Basics

Foreclosure Glossary

Foreclosure Statistics

70+ Yrs Interest Rates

Fillable Forms

Archived Articles

Dingbat Retirement Plan

Links

Contact / Map

About Us

Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ]

Conserve your cash and energy
Posted by Ward-CA- on March 24, 2008 at 6:56 PM
In Reply to: What are my options on an upside down investment property posted by Steve on March 24, 2008 at 1:23 PM
Steve,
IMHO, I would walk.
#1. Your credit report would simply show you were late making X number of payments.
#2. No, because the foreclosure of any senior lien wipes off title any junior lien.
#3. Intent to occupy is demonstrated by a person’s conduct. So if you changed your voting district, driver’s license, children’s school…all in anticipation of moving and then didn’t at the last minute, I’d say your intent to move to the new locale was genuine.

-------Ward
===========
Is it better to walk or attempt to negotiate a SS under the following circumstances:
My wife and I own a property in Rancho Mirage, CA.
Purchase price $385k. 80/10/10 financing. The HELOC second was refinanced into a better interest rate, but the balance was not paid down nor used for anything other than the purchase. The 80 first is original PMM. Both are with the same lender.
Current MV is +/- $350k.
Total P&I and taxes is +/- $2400/mo. including a very expensive HOA.
When we purchased the property in '04, long-term rents were around $2500/mo., so we felt comfortable in case we needed to rent to cover expenses. Since, with the slump in the sales market, there is a glut of rentals on the market and l/t rents have plummeted to $1250/mo.
We no longer want the property. We've actively but unsuccessfully tried to sell the property over the last several months, dropping the price from $439K to $389K.
My questions are: 1) If we negotiate a SS, what are the effects on credit? I understand that it's "bad", more specifics would be appreciated. 2) If the Bank forecloses on the first and uses the "one action", does the Bank have recourse for the HELOC even if the two loans are from the same Bank and were used to fund the same purchase? 3) What determines if the property was purchased as a primary residence? Is it the buyers intent at the time of sale? In other words, we live and have a home in the Bay area that has been our primary residence for tax purposes. Can it successfully be argued that when we purchased the RM home it was our intent to move into the RM home as our primary residence (but were forced to stay in the Bay area for reasons beyond our control), thus preserving the primary residence protections?  4) Under these circumstances, is it more advantages to SS or let the bank foreclose?

Follow Ups:

Re: Conserve your cash and energy. Thx Ward. Comment and question. Steve 9:19 PM, 03/24/08 (7)

Re: Conserve your cash and energy. Thx Ward. Comment and question. DeeCA 10:10 PM, 03/24/08 (6)

Re: Conserve your cash and energy. Dee Steve 7:08 AM, 03/25/08 (5)

Re: Conserve your cash and energy. Dee Rod 10:29 AM, 03/26/08 (4)

Re: Conserve your cash and energy. Dee steve 2:24 PM, 03/26/08 (0)

Re: Conserve your cash and energy. Dee JK (the other JK) 1:23 PM, 03/26/08 (2)

Dear ROD steve 2:30 PM, 03/26/08 (1)

Re: Dear ROD BM 9:24 AM, 03/29/09 (0)

Post a Followup:

Name : E-Mail : Subject :
Comments: : Steve, : IMHO, I would walk. : #1. Your credit report would simply show you were late making X number of payments. : #2. No, because the foreclosure of any senior lien wipes off title any junior lien. : #3. Intent to occupy is demonstrated by a person’s conduct. So if you changed your voting district, driver’s license, children’s school…all in anticipation of moving and then didn’t at the last minute, I’d say your intent to move to the new locale was genuine. : : -------Ward : =========== : Is it better to walk or attempt to negotiate a SS under the following circumstances: : My wife and I own a property in Rancho Mirage, CA. : Purchase price $385k. 80/10/10 financing. The HELOC second was refinanced into a better interest rate, but the balance was not paid down nor used for anything other than the purchase. The 80 first is original PMM. Both are with the same lender. : Current MV is +/- $350k. : Total P&I and taxes is +/- $2400/mo. including a very expensive HOA. : When we purchased the property in '04, long-term rents were around $2500/mo., so we felt comfortable in case we needed to rent to cover expenses. Since, with the slump in the sales market, there is a glut of rentals on the market and l/t rents have plummeted to $1250/mo. : We no longer want the property. We've actively but unsuccessfully tried to sell the property over the last several months, dropping the price from $439K to $389K. : My questions are: 1) If we negotiate a SS, what are the effects on credit? I understand that it's "bad", more specifics would be appreciated. 2) If the Bank forecloses on the first and uses the "one action", does the Bank have recourse for the HELOC even if the two loans are from the same Bank and were used to fund the same purchase? 3) What determines if the property was purchased as a primary residence? Is it the buyers intent at the time of sale? In other words, we live and have a home in the Bay area that has been our primary residence for tax purposes. Can it successfully be argued that when we purchased the RM home it was our intent to move into the RM home as our primary residence (but were forced to stay in the Bay area for reasons beyond our control), thus preserving the primary residence protections?  4) Under these circumstances, is it more advantages to SS or let the bank foreclose?

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ]
WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455