All Forum Posts by: Lisa Eckman

Did you by chance have the loan terms locked?  I’m assuming you were quoted, in writing, the terms you were expecting?  Yes, I’m sure it’s due to the current state of affairs (covid). If not locked, you’re probably out of luck. Either way though, call your loan officer and discuss. 

I would stay away from anything like this simply because of the verbiage. The WAY it is said. Most all scams read this way.  Hopefully this won’t be taken the wrong way, but this was not written by someone whose first language is English. Which is not to say that it couldn’t be legit. But for me, personally, no way. 

Thanks for clarifying.  It was the way I read the first response, which seemed to infer that the 1st was out of the picture.  Not true as you've clarified above. Thanks!

@Wayne Brooks I think your answer is misleading. I say that after reading the post in BP, that you also participated at in. For those interested, search for “Foreclosure from a second position” for more details. They may not get proceeds, but that doesn’t negate their position or options. The person who purchases after foreclosing in the 2nd will inherit the 1st position loan.

@Rick Pozos I thought if the 2nd foreclosed, the 1st and 2nd would get paid with proceeds, IN THAT ORDER. Not so?

I think he’s a bit new to lending if he doesn’t get it. Nothing wrong with that other than his wording (lying). This is done all the time. Ethically:  if your true intent is to live in it while fixing it up, and ultimately sell it, there’s no problem with that. I’d let it go (unless it’s a recurring issue with him) and move forward if you like the product. 

I’m just trying to understand the scenario/math. Is this correct (rough numbers):  6900 balance, pmts of 182, 78 pmts remaining. 182 * 12 mo = 2184/6900=31.6% (rough numbers only). Just want to understand. If so, that does seem to be something I would consider. TIA

1 - no, it’s fine. Happens all the time. 
2 - no, it is now NOO (non owner occupied) since you no longer live in it.

@Angel Dejesus basically, the property can be sold. First position is paid off (40k) and then 2nd (35k). Plenty of room. I have not done this before, and don’t know the details of making it happen. I think it’s the same as a foreclosure process. You just need to make sure there’s enough value to pay off liabilities in order of priority (ie: 1st, 2nd, 3rd...). Since the first is only 40k, that’s not a problem. Maybe get a prelim from a title company to make sure there isn’t anything you aren’t aware of. And of course you want to be sure your 2nd position is recorded when the loan is made.

You would be in 2nd position. What’s the amt on the 1st?  If there’s sufficient room, yes, I would do it.