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jpalomares42 · Joined: 09 Nov 2009 Posts: 1 1.35 Dollars($)

I'm in the proccess for a loan modification on my first loan but i haven't been approved yet and will have 2 missed payments with this month. I have the second loan for 38,000 but don't know what to do. should I refinance the second to get a lower interest rate and lower my payment or should i just wait for the approval of the loan mod. I'm current on the second but don't know for how long. If the modification dosen't go throught I will have to short sale or do deed in leau or maybe foreclosure. I'm I still responsible for the second no matter what happends?

savior70 · Posted: Thu Nov 12, 2009 3:31 am Post subject:

Hi,

You will remain responsible for the second mortgage until you pay it off in full. If you think you can refinance the loan at a lower interest rate, you should go for it. But given the financial situation you're in and the missed payments etc., it looks like qualifying for a refinance will not be easy. I think you should wait for some time till the first mortgage is modified. In case the modification is not accepted, you can request a short sale or a deed in lieu of foreclosure. In such a situation, you can negotiate with the second lender and settle the debt for a lesser amount.

Guest

If I refinance second loan right now and the loan modification does not go through therefore do a short sale or deed in lieu, can I negotiate with the new lender of the second to settle for a lesser amount since I just refinance or is it better to wait for the modification to go through? or is there a better change to negotiate a lesser amount with the original lender?

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do i refinance second loan or wait?