Modified Loan – Recourse or Non-recourse?

[urbanrealtor]

[quote=briansd1]Did you get a new loan drawn up? Was the old loan paid off?

How was the transaction/modification recorded?

That would help tell if the loan is recourse or not…. But either way, the above applies.

If it’s still the same purchase money loan, then it’s a non-recourse loan.[/quote]
Its still debatable, but there is a line of re legal thought right now that states that a mod makes it into a new loan and therefore recourse.

Not my opinion but expect this to be exploited in the near future.

[beelzebub]

Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?

[beelzebub]

Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?

[beelzebub]

Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?

[beelzebub]

Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?

[beelzebub]

Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?

[urbanrealtor]

[quote=beelzebub]Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?[/quote]

Plan a short sale.
Move out, rent it out, and be up front with tenants.
Rent (or buy if you have the ability) a new place now.
It will make more sense for you to stop paying down the road and you want to do this before your credit is damaged.
If you rent for yourself, make sure you get a decent lease and try to renew it before it runs out (assuming you like the place).
Getting out of a lease is much easier for a tenant than a landlord.

I am actually running 2 of these for clients right now.
I manage the rental and run interference with the seller’s bank.
Others may disagree but I really think full disclosure with the tenants is a good policy.

That’s my 2 bits.

[urbanrealtor]

[quote=beelzebub]Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?[/quote]

Plan a short sale.
Move out, rent it out, and be up front with tenants.
Rent (or buy if you have the ability) a new place now.
It will make more sense for you to stop paying down the road and you want to do this before your credit is damaged.
If you rent for yourself, make sure you get a decent lease and try to renew it before it runs out (assuming you like the place).
Getting out of a lease is much easier for a tenant than a landlord.

I am actually running 2 of these for clients right now.
I manage the rental and run interference with the seller’s bank.
Others may disagree but I really think full disclosure with the tenants is a good policy.

That’s my 2 bits.

[urbanrealtor]

[quote=beelzebub]Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?[/quote]

Plan a short sale.
Move out, rent it out, and be up front with tenants.
Rent (or buy if you have the ability) a new place now.
It will make more sense for you to stop paying down the road and you want to do this before your credit is damaged.
If you rent for yourself, make sure you get a decent lease and try to renew it before it runs out (assuming you like the place).
Getting out of a lease is much easier for a tenant than a landlord.

I am actually running 2 of these for clients right now.
I manage the rental and run interference with the seller’s bank.
Others may disagree but I really think full disclosure with the tenants is a good policy.

That’s my 2 bits.

[urbanrealtor]

[quote=beelzebub]Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?[/quote]

Plan a short sale.
Move out, rent it out, and be up front with tenants.
Rent (or buy if you have the ability) a new place now.
It will make more sense for you to stop paying down the road and you want to do this before your credit is damaged.
If you rent for yourself, make sure you get a decent lease and try to renew it before it runs out (assuming you like the place).
Getting out of a lease is much easier for a tenant than a landlord.

I am actually running 2 of these for clients right now.
I manage the rental and run interference with the seller’s bank.
Others may disagree but I really think full disclosure with the tenants is a good policy.

That’s my 2 bits.

[urbanrealtor]

[quote=beelzebub]Thank you all for your comments. I’m pretty sure the mod was done within the same loan, and a new loan was not drawn up. And, besides, we have no assets, save for couple of old cars and a government pension.

We’re about $65k underwater. We bought our house in Sept 2007, a small 2bd/1ba house in Mira Mesa, for $327k through BofA + ACORN first time buyer program. We owe $315k on it, and it’s now worth about $250k. We had a 2nd child, so now the house feels too small, but we’re stuck. It seems like if we stay, we’d have to wait at least 5-7 years, if not more, for the market to recover to a point where we can sell. Walking away might make sense, but we’re not sure of the consequences. We like home ownership, and would like to eventually be able to buy again.

Any comments on our situation?[/quote]

Plan a short sale.
Move out, rent it out, and be up front with tenants.
Rent (or buy if you have the ability) a new place now.
It will make more sense for you to stop paying down the road and you want to do this before your credit is damaged.
If you rent for yourself, make sure you get a decent lease and try to renew it before it runs out (assuming you like the place).
Getting out of a lease is much easier for a tenant than a landlord.

I am actually running 2 of these for clients right now.
I manage the rental and run interference with the seller’s bank.
Others may disagree but I really think full disclosure with the tenants is a good policy.

That’s my 2 bits.

[briansd1]

Why not live in the house-payment free for as long as you can? If you’re good at negotiating and don’t get scared, frustrated or intimidated easily, you can stretch it out for 2 years.

Bank the money.

It’s not hard to find a lease. Ask your parents or siblings to co-sign if necessary.

[briansd1]

Why not live in the house-payment free for as long as you can? If you’re good at negotiating and don’t get scared, frustrated or intimidated easily, you can stretch it out for 2 years.

Bank the money.

It’s not hard to find a lease. Ask your parents or siblings to co-sign if necessary.

[briansd1]

Why not live in the house-payment free for as long as you can? If you’re good at negotiating and don’t get scared, frustrated or intimidated easily, you can stretch it out for 2 years.

Bank the money.

It’s not hard to find a lease. Ask your parents or siblings to co-sign if necessary.

[briansd1]

Why not live in the house-payment free for as long as you can? If you’re good at negotiating and don’t get scared, frustrated or intimidated easily, you can stretch it out for 2 years.

Bank the money.

It’s not hard to find a lease. Ask your parents or siblings to co-sign if necessary.

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