questions & answers

Question: We have 2 homes 3 mortgages all mortgages were with Bank (Proper name removed). Our residential home is on trial modification. Bank sold the loan in July with our investment property to a loan servicing company (Proper name removed) before I could finish with it's modification, I want to modify our HELOC loan that Bank holds on the investment property also. If I can't modify these 2 loans the house may go into foreclosure. My question: If Loan Servicer suggests fore closer whats going to happen with our HELOC loan with Bank.? Loan is around $101,000 HELOC at 83,000 and house is worth about 145,000.We really don't know whats best for us

Answer:

Unfortunately this is a situation common to many homeowners facing foreclosure.  An issue homeowners must be aware of is whether there will be a deficiency after the foreclosure.  AZLawHelp has an article on Foreclosure Deficiencies in Arizona that may offer some insight.

Essentially, most home loans are protected against having a deficiency, however there are exceptions that arise with multiple loans, a HELOC being a common case.  Homeowners facing foreclosure or worried about having a deficiency should contact an attorney directly for specific legal advice.  Additionally, there are HUD Approved Housing Counseling Agencies that are often help the homeowner work with lenders.  Homeowners facing foreclosure in Arizona, may utilized the online application portal to apply for free and reduced fee legal services, located on the top-right of AZLawHelp under the LegalLEARN section, or follow the link.