Comments on: Real Estate Quote: Foreclosure auction intimidation http://blog.foreclosure.com/2008/01/real-estate-quote-foreclosure-auction-intimidation/ Distressed Real Estate News and Opinion Thu, 02 Feb 2012 16:42:28 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mike http://blog.foreclosure.com/2008/01/real-estate-quote-foreclosure-auction-intimidation/comment-page-1/#comment-41715 Mike Sun, 26 Sep 2010 19:13:25 +0000 http://blog.foreclosure.com/2008/01/11/real-estate-quote-foreclosure-auction-intimidation/#comment-41715 Hello, Your advise would be appreciated. Our Heloc matured this year, the last few years our home lost about 40% of it's value in the housing bust. Due to the loss of equity we could not refi the loan. To make matters worse last year I became one of the 25% of the unemployed here in Michigan. After examining all our options, we decided to file a chapter 7. We were going to file Chapter 13, however once our attorney discovered that our HELOC moved up to first position as a lein and our much larger mortgage was in second, he advised us to do a Chapter 7 so we wouldn't eventually be sued by the larger lein holder now in second position even after we left the home. Have you run into this situation in your past? The way it happened was the first time mortgage was taken out in the nineties, a HELOC was acquired for home improvements in 2000, then when interest rates dropped in 2002 a new mortgage was taken out which paid off the HELOC. The HELOC was not closed at that time. We had no idea that this would result in such a complex situation later on. Anyway, after a couple of years we used the HELOC. Apparently the title company never filed the subragation paper with the county which would have closed the account. So, we filed a Chapter 7 last Friday 9-24 to halt the sheriff sale scheduled for next week. Since the HELOC has first dibs on the money, they will get the first 120,000, do you think the other bank will bid up the property? It is currently worth about 300,000 but a house down the street cannot sell for 219,000. My brother has offered to help us to buy back the property during the redemption period for what it is auctioned for. We do have some money in IRA which would help with about half of what I am guessing it will sell for at auction. My brother offered to loan the rest until we can arrange financing through a private invester. We still have a good income and can pay most of our bills, and wouldn't have found ourselves in the situation had it not been for the extreme loss of equity and the HELOC coming due. Any advice you can offer would be appreciated. Regards, Mike Hello,

Your advise would be appreciated. Our Heloc matured this year, the last few years our home lost about 40% of it’s value in the housing bust. Due to the loss of equity we could not refi the loan. To make matters worse last year I became one of the 25% of the unemployed here in Michigan. After examining all our options, we decided to file a chapter 7. We were going to file Chapter 13, however once our attorney discovered that our HELOC moved up to first position as a lein and our much larger mortgage was in second, he advised us to do a Chapter 7 so we wouldn’t eventually be sued by the larger lein holder now in second position even after we left the home. Have you run into this situation in your past?

The way it happened was the first time mortgage was taken out in the nineties, a HELOC was acquired for home improvements in 2000, then when interest rates dropped in 2002 a new mortgage was taken out which paid off the HELOC. The HELOC was not closed at that time. We had no idea that this would result in such a complex situation later on. Anyway, after a couple of years we used the HELOC.
Apparently the title company never filed the subragation paper with the county which would have closed the account.

So, we filed a Chapter 7 last Friday 9-24 to halt the sheriff sale scheduled for next week. Since the HELOC has first dibs on the money, they will get the first 120,000, do you think the other bank will bid up the property? It is currently worth about 300,000 but a house down the street cannot sell for 219,000.

My brother has offered to help us to buy back the property during the redemption period for what it is auctioned for. We do have some money in IRA which would help with about half of what I am guessing it will sell for at auction. My brother offered to loan the rest until we can arrange financing through a private invester. We still have a good income and can pay most of our bills, and wouldn’t have found ourselves in the situation had it not been for the extreme loss of equity and the HELOC coming due.

Any advice you can offer would be appreciated.

Regards,
Mike

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