[CarrieAnn32]

Hello, I'm new to this so bare with me. I am desperate, and have been doing a lot of research on my own to try and come up with the correct answers and I'm only more confused. I need someone that knows the laws and can give me an answer on some of my questions.

My husband and I own a home in Texas for the past five years. When we purchased it I was the only one on the loan application and the only one who signed the note. We have a first and second loan. He is on the deed, when his credit is pulled either loan does not show up at all. We did not escrow our taxes and had a loan company pay them for us a few years back. They now have a lien on our home. We pay them monthly as of now. We are current on our loans as of now as well as the loan for the taxes paid but our having a new home built that will be complete next month and have not been able to sell our existing home. :( I am worried we are going to end up with two house payments and not able pay them. If by chance this happens and we have to let it go I am aware of the effect it will have on credit and I am doing everything I can to prevent that. However, if We are not able to do so, can they come after our new home? It is only in my husbands name. And also what about the lien on our home now? I have been told that they can garnish my husbands wages, as well as take our other house since we won't be able to homestead until Jan 1, 2008 and then we must wait to get put on the tax roll since it is new construction. I know this is several questions in one, but I really need some direction here. Im scared to death, and I am ill already with Kidney stones in both kidneys. I would appreciate any answers that will help me be at ease or prepared.

Thank you
Carrie:o

[ScottGem]

I'm a little unclear as to who has a lien against your home and why? When you say you did not escrow your taxes, do you mean that you didn't set up an escrow account through the primary lender so you didn't pay those taxes or what?

As for your current home, you need to find a buyer. Even if you have to use a short sale, you need to do get rid of it. If it forecloses, you could wind up owing a lot against the balance.

However I think you new home is probably safe. While they may be able to get a judgement against you for the unpaid balance, they will probably not be able to go after your primary residence. They could garnish salary and bank accounts.

[CarrieAnn32]

I'm a little unclear as to who has a lien against your home and why? When you say you did not escrow your taxes, do you mean that you didn't set up an escrow account thru the primary lender so you didn't pay those taxes or what?

As for your current home, you need to find a buyer. Even if you have to use a short sale, you need to do get rid of it. If it forecloses, you could wind up owing a lot against the balance.

However I think you new home is probably safe. While they may be able to get a judgement against you for the unpaid balance, they will probably not be able to go after your primary residence. They could garnish salary and bank accounts.

No we did not set up escrow when we closed. We were unable to with the type of loan we had. We paid them the first two years ourselves then the next two we took out a loan on. Which we still pay currently today. We have had our home on the market for months now and no buyer and not really even any bites. So you are saying they can garnish my husbands wages as well and bank account? What will a short sale do for me?

[rockinmommy]

This is something to give a lot of thought to... don't just see it as an easy fix. Have you considered renting out your current home for a period to be able to cover the costs of keeping it? Then when the market improves you could try selling again down the road.

If you can rent it for enough to cover your total, current, monthly costs on it or come very close it would be far better than getting foreclosed on, imo.

Something else to consider/check into... have you closed on the new house yet? It didn't really sound like it. How is your financing lined up and everything? The reason I'm asking is because sometimes lenders will do a preliminary credit report and stuff to give a preapproval, but then when the final/actual loan goes through underwriting for final approval they'll check everything out more carefully and thoroughly. We've been burned on this before with houses we were trying to sell. The people would have a pre-approval, but then when it came time to actually close they couldn't get the financing done. It just sounds like there's a lot going on with y'all's finances for it to go through so easily.

Good luck.

[CarrieAnn32]

This is something to give a lot of thought to.......don't just see it as an easy fix. Have you considered renting out your current home for a period of time to be able to cover the costs of keeping it? Then when the market improves you could try selling again down the road.

If you can rent it for enough to cover your total, current, monthly costs on it or come very close it would be far better than getting foreclosed on, imo.

Something else to consider/check into..........have you closed on the new house yet? It didn't really sound like it. How is your financing lined up and everything? The reason I'm asking is because sometimes lenders will do a preliminary credit report and stuff to give a preapproval, but then when the final/actual loan goes through underwriting for final approval they'll check everything out more carefully and thoroughly. We've been burned on this before with houses we were trying to sell. The people would have a pre-approval, but then when it came time to actually close they couldn't get the financing done. It just sounds like there's a lot going on with y'all's finances for it to go through so easily.

Good luck.

Thank you for your response. We have tried selling and renting. We owe more than our home is worth. With our payments now escrowed it has shot up to almost $1,800.00 for a home we paid $145,000 for!! As far as the approval, my husbands credit doesn't show this home at all, so they do not forsee this being an issue at all with his stability of almost 20 years for ups and good credit score. I DO NOT want to walk away from this home, however the stress I am dealing with daily is more than I can handle. And I do not want to worry about losing that one too once we get in it or our money to pay our bills.:(

[ScottGem]

Are you saying only your name is on the loan for the current house? Even though your husband's name is on the deed? If he is not a signator on the loan, then they can't attach his salary, but they can attach joint bank accounts.

A short sale is when the bank agrees to forgive a portion of the balance to allow for a lower sales price.

I'm still a little confused here. Didn't you realize that you would have to pay taxes and insurance on the house? If you can't afford to pay for this house, how are you affording a new one? I'd assume that its more expensive.

[rockinmommy]

I'm really worried for you. You're just digging yourself a bigger and bigger hole. Please don't take this wrong... I'm saying it to sincerely try to help. You need to forget the new house, deal with what's on your plate, try to pay SOMEthing on the existing house as fast as possible (scale back, sell stuff, etc). You have no business buying another house at this time. It's like having a baby to try to fix a bad marriage.

Anything you do with the existing house other than continuing to make timely payments and eventually pay off the mortgage in full with the proceeds of a sale is going to hurt your credit significantly.

[CarrieAnn32]

Are you saying only your name is on the loan for the current house? Even though your husband's name is on the deed? If he is not a signator on the loan, then they can't attach his salary, but they can attach joint bank accounts.

A short sale is when the bank agrees to forgive a portion of the balance to allow for a lower sales price.

I'm still a little confused here. Didn't you realize that you would have to pay taxes and insurance on the house? If you can't afford to pay for this house, how are you affording a new one? I'd assume that its more expensive.

Is there anyway you would be willing to talk over the phone? I want to be sure I have explained everything to you. So you can understand how I got where I am now. Kind of hard to do this way? Yes my name was the only one on the loan. He signed the deed though. His credit reports do not even show the loan at all. Or the statements that come to our home. I did realize that the taxes would have to be paid, as I said before we paid them the first two years at the end of the year with our tax returns. Then we got behind as I have a five yr old with Chron's Disease and stay at home. We then took out a loan with a tax place to catxh us up and pay on that monthly. To make sure it didn't happen in the future we set up escrow with the first loan. We now owe more on our house than we can get for it, plus we have this lien with the tax loan we took out. We didn't even know that until a week ago. Our interst rates are CRAZY! 13.9% AND 7.9% AND OUR PAYMENTS OUR shooting up to $1791.00 a month as of Oct. 1st. We thought we could re-fi and get a better interst rate but with the $9,000 they want to do that we cannot get it out of his 401k unless it is used for a new home purchase or we are in foreclosure. We are current now and have always been able to afford the house, just an isssue with the large tax bill in one lump sum at the end of the year. So we were told to get into a new one with a less than 6% rate which puts our payments at around $1400 with taxes, insurance, etc... That $1791.00 I mentioned before does not include my insurance by the way. We didn't realize how upside down we were, and now we cannot sell the house. I am suppose to see a lawyer tomorrow. More money spent that we really cannot afford. But Im afraid and this is my first home. I have learned a lot of hard lessons with all of this and want to do what's right for everyone here including the lender. I have to make sure my son has a roof over his head. Thank you for the time your taking in responding to me I REALLY appreciate it.

Carrie

[CarrieAnn32]

I'm really worried for you. You're just digging yourself a bigger and bigger hole. Please don't take this wrong.........I'm saying it to sincerely try to help. You need to forget the new house, deal with what's on your plate, try to pay SOMEthing on the existing house as fast as possible (scale back, sell stuff, etc). You have no business buying another house at this time. It's like having a baby to try to fix a bad marriage.

Anything you do with the existing house other than continuing to make timely payments and eventually pay off the mortgage in full with the proceeds of a sale is going to hurt your credit significantly.

I thank you both for your thoughts, and I have to tell you that I agree with most of them. However, I do not believe you understand just how much this house is going up? As of Oct 1st It will shoot up to almost $2,000 a month and that is not including our house insurance which then puts us over $2,100. We were paying less than $1,200. Do to the escrow, and the ARM AND THE PROPERTY value going down we are NEVER going to be able to pay for this home. We have done our best to sell, to rent out and NONE is going to pay that kind of money for this three bedroom 1900 sq. foot home. The interest rate alone is CRAZY!! WE HAVE BEEN told we will end up losing this house if we don't get out that is why we chose to sell. I did go talk to a lawyer in person On Friday last week. I realize what is going to happen to my credit, I plan on trying to hang on as long as I can at least until the fisrt of the year in hopes a miracle happens. Also we are going to pay off the lien on the house so that will be one less worry I have on my mind. As for paying something on my house Im living in now, I am current not behind here. I have a family I have to look out for, and I WILL NOT take the chance of not having either house in the long run to keep a roof over our heads. If I end up falling behind (which I will) My credit will still be runied and I will NEVER be able to get another home. The new house by the way is half that much with insurance, taxes and a 100% better interest rate. Thank you again for helping me, I am just going to hope this all works out for us and know in my heart that I really am trying to make this work and get us out of a bad situation. I really do hate to talk over the net as there is a lot that can not be seen through the fine print. But I was desperate to know I wouldn't have my other home taken as well if it came to that in the long run..

[CarrieAnn32]

I'm a little unclear as to who has a lien against your home and why? When you say you did not escrow your taxes, do you mean that you didn't set up an escrow account thru the primary lender so you didn't pay those taxes or what?

As for your current home, you need to find a buyer. Even if you have to use a short sale, you need to do get rid of it. If it forecloses, you could wind up owing a lot against the balance.

However I think you new home is probably safe. While they may be able to get a judgement against you for the unpaid balance, they will probably not be able to go after your primary residence. They could garnish salary and bank accounts.

Hi Scott, I just wanted to let you know I did see that Lawyer. In Tx they cannot garnish your wages. They can get a judgement and freeze up a bank account but they cannot take your homestead or garnish wages unless it is child support, or IRS related mostly. Doesn't fix my problem, but it will help me sleep a little better at night. I really am doing the best I can, and I know for some it's hard to believe however things do happen and I will have to just hope for a miracle. Thank you so much for all your help.

[rlosito]

Hello, I'm new to this so bare with me. I am desperate, and have been doing alot of research on my own to try and come up with the correct answers and I'm only more confused. I need someone that knows the laws and can give me an answer on some of my questions.

My husband and I own a home in Texas for the past five years. When we purchased it I was the only one on the loan application and the only one who signed the note. We have a first and second loan. He is on the deed, when his credit is pulled either loan does not show up at all. We did not escrow our taxes and had a loan company pay them for us a few years back. They now have a lien on our home. We pay them monthly as of now. We are current on our loans as of now as well as the loan for the taxes paid but our having a new home built that will be complete next month and have not been able to sell our existing home. :( I am worried we are going to end up with two house payments and not able pay them. If by chance this happens and we have to let it go I am aware of the effect it will have on credit and I am doing everything I can to prevent that. However, if We are not able to do so, can they come after our new home? It is only in my husbands name. And also what about the lien on our home now? I have been told that they can garnish my husbands wages, as well as take our other house since we wont be able to homestead until Jan 1, 2008 and then we must wait to get put on the tax roll since it is new construction. I know this is several questions in one, but I really need some direction here. Im scared to death, and I am ill already with Kidney stones in both kidneys. I would appreciate any answers that will help me be at ease or prepared.

Thank you
Carrie:o

Only the IRS can Garnish your wages

[rockinmommy]

[QUOTE=CarrieAnn32]I do not believe you understand just how much this house is going up? We were paying less than $1,200. the ARM [QUOTE]


Ahhhhh, now I'm beginning to understand the full situation!! If you said earlier that your mortgage had an ARM I missed it. It makes a lot more sense with knowing that. SO many people got sold on loans with ARMs and now it's turning into a crisis!

You mentioned paying off the 2nd... that's a GREAT place to start!

With the assistance of your attorney have you thought about trying to negotiate with your lender? It's difficult when you're not actually behind *yet*. It's hard to convince them that you will be soon if they don't do something to help you, but that's where your lawyer should come in handy. A lot of people don't really realize that the lenders don't really want your house. It winds up costing them money - they're just not equipped to deal with realestate. If you can convince them of what's going on and get them to lock you in at a rate close to the "going rate" for someone with your credit, etc would that help? If your payment was lower could you rent the house?

Well, good luck. Keep us posted. There are probably a lot of people who look at this site in your same situation who could benefit from reading your story.

Karla in TX

[CarrieAnn32]

[QUOTE=rockinmommy][QUOTE=CarrieAnn32]I do not believe you understand just how much this house is going up? We were paying less than $1,200. the ARM

Ahhhhh, now I'm beginning to understand the full situation!! If you said earlier that your mortgage had an ARM I missed it. It makes a lot more sense with knowing that. SO many people got sold on loans with ARMs and now it's turning into a crisis!

You mentioned paying off the 2nd... that's a GREAT place to start!

With the assistance of your attorney have you thought about trying to negotiate with your lender? It's difficult when you're not actually behind *yet*. It's hard to convince them that you will be soon if they don't do something to help you, but that's where your lawyer should come in handy. A lot of people don't really realize that the lenders don't really want your house. It winds up costing them money - they're just not equipped to deal with realestate. If you can convince them of what's going on and get them to lock you in at a rate close to the "going rate" for someone with your credit, etc would that help? If your payment was lower could you rent the house?

Well, good luck. Keep us posted. There are probably a lot of people who look at this site in your same situation who could benefit from reading your story.

Karla in TX

Hi Karla! It's funny to me just how much they are NOT willing to work with me at this time. Most people get two or three months behind before they even let them know there is a problem. I have begged them to help me and explained to them what is going to happen if they do not. It doesn't take much to see we are NEVER going to be able to afford that monthly payment. They would rather wait till we are in trouble, ruin are credit and be sure we are stuck in a situation where we will either loose the house and never get another or struggle until we cannot any longer. Once we begin to miss payments then the credit will not be where it needs to be to go into another home even if we were to catch up, or sell. Never in my life have I been so streses out! So we are just in limbo, waiting to see if someone takes this house, or we can rent it. We will never be able to rent it at the new payment, so we planned on having to put some of our own money towards this payment as well if we did rent until we could get rid of it. However, like I said it's not looking so good for us. I feel for those who end up losing their homes, although I have a new one being built it still is a huge burden to know my credit will forever be runied and that someone will look down upon me thinking I was "trying to take the easy road out" when that couldn't be further than the truth. Thanks Karla for your reply and I will let you know how things play out for my family. Have a wonderful day!

Carrie:o