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Non-recourse 2nd Mortgage in California with Bank of America...

They do not seem to be doing anything about it other than reporting us 120 days late every 3 months, which of course is hurting our credit, not to mention the outstanding loan amount of $80K makes it look like we have a crazy amount of unsecured debt. We have sent them numerous letters citing the non-recourse laws. If the statue of limitations runs out, will that outstanding amount still be there? For how long? Would we ever be able to get another mortgage with that there? by klouie_597_850 from Rowland Heights, California. Dec 11th 2012 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,479 contributions

You should talk to an attorney... your question is very vague, but if I'm reading between the lines, it sounds like you had a foreclosure and the 2nd is still showing the account open and currently 120+ days late.. The lender has the right to report the bad debt.. Non-recourse laws have to deal with the ability to collect... but has nothing to do with how the lender chooses to report to the credit report... talk to a local attorney and see if he can give you advice on how to get them to write off the debt or close the account.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Dec 11th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,815 contributions

It sounds like you lost your home to foreclosure, presumably by the first mortgage lender, but BofA is still reporting the second mortgage as delinquent. If I am right, you would not lose your anti deficiency status as you and they are subject to the rules in place on the date of the foreclosure. Therefore, they should charge off the amount as a loss and be done with it. Since it is obvious that they are not doing that, you may need to get an attorney involved, and since it seems the only way to get the big banks to cooperate and follow the law is through court action, maybe a lawsuit against them would get their attention. Good luck. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Dec 12th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

are you upside down in your home value? you can email me at yourloanpartnerforlife.com linda i might have a solution for you

Dec 11th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

sorry email is yourloanpartnerforlife@live.com

Dec 11th 2012
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Yeah, there' s more going on here than is you are either telling us or that B of A is not telling you. Email Linda that Responded and have her help you. She needs a lot more info than you gave.

Dec 11th 2012
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Yes, the foreclosure did go through and the first has charged it off (Litton, sold to Ocwen 2 weeks before the auction). Second was originally Countrywide then became Bank of America. We don't receive statements or bills anymore from BofA, but the loan is reported as 120 days late every 3-4 months, and the balance is showing up on the credit report. We don't even know what kind of lawyer handles this, we dealt with one when we decided to default, but at $300 an hour, I want to be sure he can actually help before we make an appointment. If it's just a matter of waiting for the statute of limitations to run out, I could live with that, since we don't really want to buy again soon, having been burned by the process this last time. Long story short, we bought a house with a bad loan, but we could have lived with that. It was the flooding of all 4 bedrooms and 2 bathrooms everytime it rained hard that we couldn't live with. Completely due to the neighbor's illegal concrete up against the side of our house, but seeing as she was sent to Federal prison for Medicare fraud and owed the government millions of dollars she couldn't pay them, we knew we'd never see a dime. So we were underwater, literally and figuratively...I would just like to know what happens when the statute of limitations runs out. What does it actually look like on a credit report? Will it still show an outstanding debt of $80K? Or will BofA be forced to write-it off at that point? All of our other debts are paid on time, and we only have two car loans, one major credit card, and two retailer store cards. Should we just focus on maintaining that credit, or be more proactive and deal with BofA?

Dec 12th 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,479 contributions

I would suggest you contact a real estate attorney, or if you cannot afford that, try contacting a credit repair company.. As long as BofA continues to show that account open, it can affect your credit and your ability to purchase a home in the future.. Based on current guidelines, you must wait 3 years after the home is taken out your name or from the day the loan was charged off.. in your scenario, the loan is still active, you have not had one day into the 3 year waiting period... you can try contacting the credit reporting agencies yourself, however you should read a few articles on how to properly dispute credit.. if not done right, it could make things worse....I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Dec 12th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,815 contributions

I would not encourage you to spend $300 an hour for an attorney at this point. You could just wait it out, but it will stay on your credit report for 7 years from the date of the foreclosure and you should not have to put up with that, because it will mess with your credit score and. The first and easiest way to get the ball rolling would be to file a complaint with the Consumer Financial Protection Bureau. This is the new government watchdog agency and they have some pretty big teeth. Visit them at www.consumerfinance.gov. Good luck. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Dec 12th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,815 contributions

Just to be clear, If the first mortgage is foreclosed upon, and your state has an anti-deficiency statute AND your second mortgage meets the criteria of the anti-deficiency statute, then the actions of a lender to attempt to collect on a second mortgage that no longer has legal standing (because it meets the anti-deficiency test), is most likely a form of harassment. If however, your second mortgage does not meet the anti-deficiency test, then the lender should have the right to try and collect. Usually (but not always) the test is based on when and how the second mortgage came into being. If the second mortgage was arranged for at the time you purchased the property and you signed the loan papers for it at the same time you signed the papers for the purchase and the loan papers for the first mortgage, it should meet the test. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Dec 12th 2012
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Yes, the 2nd was purchase money only at the same time as the first, never any refi.

Dec 12th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

i do have a referral for you for a real estate/ forclosure attorney, that does not charge you a arm and a leg.. linda yourloanpartnerforlife@live.com

Dec 12th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,815 contributions

Then I would file a complaint with the CPFB. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ Licensed in California and Arizona ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Dec 12th 2012
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