BiggerPockets

We finally got a letter on Sat from a lawyer for the mortgage company saying that we have 30 days to make up payments on our home in Wisconsin. We will not be doing this so we know we will be losing the home.

Our questions are:

Do we need to appear in Wisconsin when they take the house? We have not lived there in two years and have nothing there to collect.

Will our home in Indiana be at risk? We moved here in 2006 and have made all our payments on this home and the one in Wisconsin until 6 months ago, when it began to be impossible to do so any longer so we stopped paying on the Wisconsin one and began working with the mortgage company with no help.

Will we be responsible for any money to be paid once the home is gone? All utilities are up to date and taxes are being paid on schedule.

Do we need a lawyer? And if so in Wisconsin or Indiana or both?

From the state by state directory:

" The foreclosure notice must be recorded with the county prior to the time the first notice of foreclosure is published. The notice, which must include the time and place of sale, must be published once a week for six consecutive weeks in a newspaper in the county where the property is located.

The notice must be served upon the borrower in the same manner that civil process in a lawsuit is served."

As we live in Indiana how will this be served?

Are you trying to sell the Wisconsin house? Have you spoken with that mortgage company? Might they be willing to accept a short sale on that house? What's it worth vs. the mortgage balance?Do you have any equity in your house in Indiana? Do you have any other assets?

The house in WI has been on the market for 2 years. No interest at all. The area we use to live has a home on each block for sale. Our realtor had to find a second job as the market is so bad up there.

We have a mortgage for $101,000 worth $98,000 as we refinanced in 2005 for a better rate and had all the fees set into the new mortgage.

We have tried over the last 9 months to work something out with the mortgage company, short sale and DIL but they would not budge.

As for equity in the home in Indiana I do not know. We will not get a tax bill until 2009. All we were assesed this year is $600 as our home is a new build. As for what we own outright, we only have a 98 car that is on its last legs and worth at most $2000. We have no savings as that went to paying both mortgages and bills to go with both homes.

How do they take the money we owe? Wage garnishment?

We had talked with them about a Deed in Lieu and filled out all the paerwork but they said no.

A short sale was also discussed but with the home being on the market for 2 years with no interest a short sale would not happen as we need a buyer. Even if the mortgage company allowed a short sale there are no buyers and I doubt they would allow this to go another year or two for one to show up. We are just out of luck.

The realtor is going to try as I just called and they would not talk to me about a short sale.

My hometown is not deserted, but my realtor has only sold 1 home in 6 months, 0 buying. Realtor.com has 157 homes for sale in town within our price range, how can a home sell with that many for sale!

Lets just hope she has more luck than me.

Originally posted by "JLUK74"

My hometown is not deserted, but my realtor has only sold 1 home in 6 months, 0 buying.

Hmmm, have you spoken with any other realtors? If I had a property that had been listed for two years, I'd be on at least my fourth realtor.

You say there are 157 homes in your price range. How many sales have there been in that range in the last six months?

Realtor.com has 157 homes for sale in town within our price range, how can a home sell with that many for sale!

By being the very best deal out of those 157. You're not there, and sounds like you're not long on cash, so doing any fix up may not be an option. You don't necessarily care so much about price range as you do about comparable properties. If all the properties with similar beds/bath/garage/size/age/neighborhood and whatever other factors matter in your area are priced from $200-$225, for example, then price yours at $175. Get it into a price range where anyone searching will see your house as noticeably better than anything else in that price range.

The lender may be more willing to negotiate when you have an offer in hand.

Jon