AboutEric Forster Expertise Did your last mortgage broker or lender trick you into a messy situation which could cost you your home? I've been close to 30 years in the mortgage industry, and I've seen it all. Believe me, it is not pretty.
As the owner of a mortgage company I am called frequently to testify as an expert witness in mortgage fraud cases and other cases where lenders did not fully disclose the terms of the loans they were offering to the borrowers. I have seen fraud being committed by borrowers - and by lenders. It's a tough world out there.
Experience More than 25 years in loan production and underwriting in Southern California.
Organizations Mortgage Bankers of America (Southern California Chapter)
Publications Former columnist for AOL Financial Center and the author of a mortgage primer.
Expert: Eric Forster Date: 7/12/2008 Subject: Forclosure
Question We recently moved to Florida with a job change, and are unable to sell our house in Virginia (12 months on the market). We have a 1st mortgage of 170k and a HELOC of 360k -- which was used to renovate our home in Florida. The house in VA is not selling, despite our lowering the price significantly (to the point of a short sale price). We have tried to re-fi the debt, but our debt to income ratio is too high -- and we've now exhausted our available assets keeping up with the payments.
At this point, we're considering forclosure, but want to know what the ramifications would be on our other assets (home in Florida, an annuity, 401k, etc.). Can BB&T (1st) or Wachovia (HELOC) attach our other assets?
Answer In some states, such as California, purchase money mortgages are "no recourse" loans and the foreclosing lender cannot go after other assets. In other states the opposite is true.
While I cannot answer questions specific to VA laws, the current proposed changes in mortgage-financing laws are on your side, making the likelihood of a lender going for a deficiency judgment against you quite unlikely.
Aside from that, retirement accounts such as IRA's, 401k and annuities are judgment-proof and cannot be attached.
