Default on 2nd only, Forces Foreclosure

Submitted by Bill Salisbury from CA - 02/24/2010 - 11:51am

My home of over 25 years has a public notice of default given to me Dec, 10 2010.
3 months would be March 10, I could have a sale date. It is for default on the 2nd with Wachovia, now Wells Fargo. No mention of the 1st. My last payment I could make on the first was June 2008. From the short sale offer stories I have read on here, it looks like even if it is not to late to list as a SS, any offer may still not stop a Trustee sale date or the lender could just ignore it or fowl it up. I am not that upside down in it as the 1st is 325,000 and 2nd is 50,000. comps are about 325 to 425 in the area. It is in need of some repair though.

Should I list it as SS and would an agent even take it at this point?
If it is in default due to the 2nd only and it sells at either a auction or SS that wipes out the 2nd and what happens to the first? Am I still liable for any of it and would a BKR stop any wage garnishments?

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Comments

Submitted by Michelle - 03/01/2010 - 6:05pm

The good news is that Wachovia is hands down the best lender to negotiate with on a short sale and they are typically willing to postpone a trustee sale for a short sale transaction. Look for an experienced short sale agent in your area and start to examine your options immediately. You should also stay in touch with Wachovia. If you have not contacted them about other options (like a modification or other workout program) you should do so immediately. If you decide to do a short sale Wachovia is also typically willing to negotiate full satisfaction releases but you will want to make sure that you read the short payoff carefully. An experienced agent will be able to help you though this process and answer your specific questions. You are doing the right thing by examining your options.

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