Easy Home Equity Loan

I work with a person that is intentionally defaulting on her mortgage. A second mortgage was taken out to purchase another home, before the credit takes a nose dive. Is this illegal? What are the laws around this situation in PA?
To clarify… this became a domestic situation where she did not want to remain neighbors with those living near house number 1.

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I have a first and second mortgage (to avoid PMI) and I am wondering if, after foreclosure, if we are going to be liable finacially for the banks loss, or the difference between our loan balance and what they get in the foreclosure sale? I know that our credit score will be affected, but I am wondering if that is the only repercussion? I also know the laws are different in states I am in Nevada anyone that knows the nevada foreclosure law specifically would be great. I am also wondering once we move out, assuming we do so before notice to evict what role will we, as the homeowners, need to play in the foreclosure process? I have heard that you must fill out a 1099 form for taxes? saying the difference between the amount owed and what the bank gets is roughly 30,000 what would that mean we pay at tax time?

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We bought a new home 3 1/2 years ago for 260,000 dollars and improved it in many ways. We have significant equity in this home; we owe just 113,000 dollars on a 30 year conventional (fixed) mortgage at 6.25 percent. My wife and I have credit scores of 750-760 depending upon the bureau asked. Aside from our home loan (113k), we have no debt whatsoever. My wife & I are both teachers.

About six weeks ago, we decided to refinance the home at a much lower interest rate and pull out 15,000 dollars equity. Everything was going fine until, about three weeks later, I decided to relocate for a better-paying job out-of-state. Because property values have declined in my community, we chose to rent the home for 1,500 per month with the goal of selling it after a year or so when the housing market improves. The home will be rented tomorrow.

Unfortunately, the appraiser somehow got the idea that we were selling our home, and our bank initially declined to refinance because of this. When I explained the situation to my loan officer, she said they’d have to “start the process over again” and that we’d pay higher fees and have a higher interest rate if approved.

So I have a couple of questions.

First, how long is this approval process going to take on average? Will it take another month?

Second, what is the possibility of getting a second mortgage to buy an inexpensive home where I am now? In today’s market situation, is that difficult to accomplish?
Our income isn’t very high because my wife chooses to only work part-time these days and spend more time with the kids. We generally have a 55-60K income. We had planned on initially renting in our new community, which is a rural area, and then (after a year or so), selling our home and purchasing with mostly cash. But the rental market is outrageous due to the military base I think. It’s much cheaper to buy: a fairly nice home (15 years old) rents for 17-800, but can be purchased for 150k. So rents are high, but prices are pretty low.

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My home foreclosed and there is a judgment against me. How long can they attempt to come after me for that money? Do I have to declare bankruptcy? What does the mortgage company gain by forcing me into bankruptcy? Is there any advantage to going into bankruptcy? I never took out a second mortgage, how often do mortgage companies come after foreclosures for the remaining balance judgment against them?

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What if they already have a first or second mortgage on their house?

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i asked a similar question earlier but looking to find out what happens with my second equity mortgage with a forclosure? we plan on telling our primary mortgage company that we cant afford it anymore and we are either gonna sell our home or do a short sale. but what happens with the second mortgage that we got with the equity on the house? should we do the same thing and just tell them we cant pay it anymore?

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When me and my husband purchased our home we were green to the whole buying process. We found a mortgage company that would qualify us for a home loan, we were just happy to finally have our home, needless to say two years later we wanted to refinance our home and we find out we have a second mortgage (an 80/20) no one explained this to us at the time, nothing was said. Is their anything I can do legally?

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House A was paid for and I took out a second mortgage to help in the purchase of House B. I now live in house B (with it’s own mortgage interest that I can write off). House A remains empty and unsold. Can I also write off the interest on House A?

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