Here’s the question: I’m a first time home buyer. I recently try to purchase a REO property which own by SPS Select Portfolio Servicing, Inc. While reading through the contract, I find it really long (11 pages) and not very easy to understand. Is this normal for a purchase contract to be that long? Does [...]

Darrell asks, “I have a 1st & 2nd mortgage. The 2nd is with a different mortgage company and it has a balloon payment which is due December 2009. What happens if I can’t pay the full mortgage balloon payment amount by Dec. 09 on the second mortgage. They can’t make me sale the house when [...]

“I have been trying for months to get a loan modification from my servicing company. But to no avail. So I thought if I spoke directly to the lender, I’d get a better response. But the servicer tells my they don’t know or can’t give me that information. So, is that true? Who really owns [...]

“I am a resident of Indiana. My mortgage is 15 months late. When I talked to First Franklin a month ago they said that the sheriff’s sale was set for April 15th.” “I filed with them in March of last year. It was supposed to take 45 days. I didn’t hear back until July and [...]

I got this question from a reader… “Am I understanding that when an owner loses his house in foreclosure and the auction takes place, he can actually purchase his own home back at a cheaper cost? In other words, can he bid on his own home?” Let’s discuss the last question first, “Can the owner [...]

Here’s the question…then the answer. “We, the buyers, signed a purchase agreement with a Realtor/seller two days before the seller’s bank bought home at a foreclosure auction. Are we still bound to the original purchase price agreement we signed with the Realtor/seller? We are still interested in the property, can we make another lower offer [...]

Here’s the whole question: “We have a HELOC that we have been paying on time no lates. However, our 1st mortgage may go into default. What happens? If the 1st does go into foreclosure are we still responsible for the HELOC? “ What Happens To HELOC During Foreclosure? Since the HELOC (Home Equity Line of [...]

I’ll reprint the question before answering.. “What happens to an IRS and State income tax liens and the real estate tax lien when the first mortgage company forecloses” Superior Liens & Foreclosure When it comes to understanding how liens are satisfied or expired at foreclosure, you must understand liens are ranked by time (ie. when [...]

This is a great question. A deed in lieu of foreclosure agreement is when the lender agrees not to pursue a foreclosure action against the borrower in exchange for the borrower signing the deed over to the bank. Hence the name, “deed-in-lieu”. Deed in Lieu of Foreclosure Pitfalls The obvious benefit for the lender is [...]