USDA/Foreclosure/2nd Lienholder

[txmomof2]

What is the name of your state? Texas

Ok, I bought a house through a Rural Housing Program/USDA in October 1994. Due to circumstances (I'm about to get laid off)- I cannot afford this house anymore.

In 2001, prior to all this, I had some work done to my house and have a home improvement loan as well.

I tried in 2004 to refinance- got appraisals done, etc- but the payoff from USDA was too high (they were including the subsidy in the payoff, although their handbook states that as long as I remained the primary occupant it could be deferred)...and the refinance fell through.

I have an opportunity to takeover payments on my mother's home (she moved to townhouse) which will save me almost $800 per month in house payments alone.

I plan to put the house on the market and try to sell. I'm hoping that I could get enough to pay it all off- I called USDA to ask questions, but they were no help- basically telling me it all depends on how much I sell for and how much 'profit' I gain- even after 10 years in the house, I won't be profiting from a sale- that much I know.

How does foreclosure work- as in, how long does it take? In the event the house does not sell, I'm still planning to move to the family home and take up those payments- I cannot get laid off and then get foreclosed on with no place to live.

Anyone been through foreclosure with USDA? What about the 2nd lien? I know that USDA will take income tax refunds- what about wage garnishment?

If I don't have enough info here- please let me know!

Thanks in advance for the help.

 

[seniorjudge]

This is GENERAL info on how foreclosures work; stand by to see if any Texas lawyers answer.

Q: How does foreclosure work- as in, how long does it take?

A: The property is advertised for sale for x number of weeks and (in some states) a court hearing is needed. It is then sold at the courthouse steps at a public auction. You generally have until the sale date to move.


Q: Anyone been through foreclosure with USDA?

A: Stand by for further answers.


Q: What about the 2nd lien?

A: Any loan that was put on the land after the USDA loan will be wiped out in the foreclosure.


Q: I know that USDA will take income tax refunds- what about wage garnishment?

A: If your state allows for deficiency judgments in a foreclosure, then if the land does not bring enough to pay off the mortgage, you will have a judgment against you which can mess up your credit report and make it hard to get another loan.


As I said, stand by for more specific answers. What I have told you is just a brief overview.

 

[txsinglemom]

USDA Foreclosure

I also bought a house through USDA and would advise anyone who is considering doing so to rethink thier decision.I have had nothing but problems dealing with USDA.When I closed on the house,I was not informed that after my first year in the house,my mortgage paments would double.I was not informed of this increase,therefore began recieveing notices of late payments.When I tried to contact someone who could help me figure out what was going on,I was passed around from person to person,office to office,and always got the same responce,"we don't have that information".I am now facing foreclosure.

 

[clevario9217]

Usda

We had a fire in January of this year. My husband spoke with usda and told them the situation. Our home was and still is unlivable. We had to get our house gutted and remodeled. Now we our in foreclosure, due to not filing the proper paper work. Which we didn't find out about till a couple of weeks ago. I have known idea what we should do. Please any information is helpful and needed. Thanks

 

[Silverplum]

Please start your own thread, and be sure to include the name of your US state. Thanks.