2nd mortgage default

jkocha · Joined: 18 Nov 2009 Posts: 1 1.29 Dollars($)

I owe much more than the house if worth due to economy..1st mortage is current..2nd nortgage is 5 months late due to wage cut and hours reduced..2nd mortgage offered lower interest rate but still cannot afford it..Got default notice, called and they still offered same thing.Can I try to negotiate a one time settlement? and what can they do about this? Thanks in advance

savior70 · Posted: Wed Nov 18, 2009 6:24 am Post subject:

Hi,

The second mortgage holder has a lien on your property and can foreclose on it if you default on the loan. It is important to stay current not just on your first mortgage but also on the second mortgage. In case you cannot afford the second mortgage any longer, you can talk with the loss mitigation department and settle the debt for a lesser amount. I'm not sure if the second lender will accept that, given the fact you're current on your first mortgage. But it's surely worth a try.

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