Help with settlement

Foreclosures, Short Sales, Tax Foreclosures
1

I have two investment properties (residential lots) on my personal name and both have separate mortgage. I bought the properties in May 2005. I was paying mortgages until Sep 2008, and am defaulted now for a year. Bank has agreed to following to settle both mortgages (total debt: $250,000):

  1. Pay them $70,000 cash
  2. Sign the dead in lieu of foreclosure for both the properties.

Could you please advice me what I can put in the settlement agreement to make sure it has least impact on my credit. Can I ask for bank to not report is as dead in lieu of foreclosure etc? I have spent couple of months negotiating with the bank and we have agreed to above.

I do not have any equity in properties and prices have gone down a lot, I am not sure if I can even recover one fourth.

2

Now help me/us to understand with a little more clarity.

You have two buildable lots. You have NOT been able to sell them. The bank wants you to give them 70,000 instead of just catching up the payments, then for you to deed the lots back to them in lieu of foreclosure.

Explain please, why or how you would not make the payments for a year yet all of the sudden be willing to consider giving them 70,000 AND give the properties to the bank. This doesn’t seem to make any sense. Why wouldn’t you just keep the 70K and give deeds-in-lieu on both of the properties?

3
  1. Bank has law suit filed against me to get the judgment to come after other properties if I do not settle.
  2. Bank would not agree to just the properties.
  3. I will pay using equity in other property.
4

dude - talk to an attorney - who’s good and knows real estate and foreclosure/short sales.

i think you sound like a sucker - no offense meant.

but omg - are you crazy?

get an attorney - do whatever you’ve got to do - but giving a bank that type of money…give me a break. there’s got to be ways around that…

and how are they going to “come after your other properties”???

put liens on them? in what position???

lol

if you’re not selling your other properties - then don’t worry about it.

OR - sell your other properties while you’ve got the bank on the hook for these negotations.

dump out of everything - make any money you can QUICK - then file bankruptcy.

DON’T GIVE YOUR MONEY AWAY.

and don’t pull equity out of other properties to pay for land that’s lost value. that’s just nuts.

period.

talk with an attorney but man i’d let the bank come after me - f them!