 smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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 Posted: Fri Dec 19, 2008 8:51 pm Post subject: |
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Hi ana!
Welcome to forums!
If you are delinquent on your mortgage payments, then you can apply for a deed in lieu with the first lender. If the first lender accepts a deed in lieu foreclosure, he will include a non-merger clause in the agreement. With the inclusion of this non-merger clause, the second mortgage lender will not be able to claim any compensation from the first lender. Thus, the second lender may charge off your loan to a collection agency who will collect the loan from you. Second mortgage charge off does not mean that the second mortgage has been forgiven. To know more about second mortgage charge off, check out the given link:
http://www.mortgagefit.com/know-how/secondloanchargeoff.html
If the lender is accepting a deed in lieu, then I think you should go for it. In case if there are no other options available for you, then you can think of bankruptcy. And if you plan to go for bankruptcy, I think you should check out Chapter 13. This helps in re-organizing the debts. The lender will give you a new repayment plan through which you will be able to pay it off. Though initially, Chapter 13 bankruptcy will affect your credit badly, but your credit score will start improving once you start paying off the debts.
Feel free to ask if you have further queries.
Sussane |
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