What happens if you stop paying your 2nd mortgage?

jameshogg · Posted: Mon May 11, 2009 8:41 pm Post subject:

Hi gail,

If you stop paying the second mortgage dues, the second mortgage lender can foreclose the property or place lien on other properties. The second lender may even charge off the mortgage dues.

However, if you declare bankruptcy, then the lender will not be able to come after you for the payments as the court will issue an automatic stay on any type of action taken by the creditors.

Thanks

Guest

Here's whats happening to us. We have a first and second with the same mortgage company. I was forced to retire because of health problems. My income was cut in half. I kept paying both for a few months (by using savings). But finally realized that I the savings was disappearing and I would lose the house anyway. I tried to no avail to contact my mortgage company, but they would not talk to me. Last June 2008, I made my last payment on both mortgages. Then the phone calls started to come, but at first it was just people in collection and they would not talk about anything but me making my payments. I filled out the paperwork for the loss mitigation program. I did it on line, mailed it a couple of times and faxed it. After several months of no response, they finally modified my first, but has totally ignored my second. They stretched my loan out to 40 years and lowered my interest. It lowered my payments by $600. a month. But now what happens to the second? I tried to get them to address both loans at the time they were working on the first, but they would not listen to me. In the plan recently released by the Obama Administration, Making Home Affordable (MHA) there is reference to extinguishing second mortgages. What does that mean? Now I have the mortgage company calling daily about the second mortgage. I have told them I can't pay it. I just live in fear as to what their next move will be. It just doesn't seem like they would modify my first and then foreclose on my second. I owe 260,000 on first and 60,00 on the second. The home next door to me (same as mine) foreclosed about six months ago and resold for 120,000. Has anyone else had there first modified and not their second. I welcome any replies.

Guest

My home is worth $230,000. I owe $490,000. I owe $375,000 on my first and 115,000 on my second. The second is with popular "garbage" mortage. I notified them I would be missing my first payment after two years of paying on time and the guy blew a fuse. For the past 3months they have been calling me on Sunday's before the mortgage was due. It did not matter that I was current in my payments they still called. I got in a shouting match with the guy because he kept demanding that I give him an answer when I can pay. When does the lenders actions cross the line if you cannot pay?

brianmortgage1 · Joined: 12 May 2009 Posts: 2 1.73 Dollars($)

It was really very useful replies which all the menbers are giving and you will get the exact information regarding What happens if you stop paying your 2nd mortgage?

Niicss · Posted: Wed May 13, 2009 4:14 am Post subject:

Hi,

To VickiB,

It is good that your lender is modifying the first loan. As far as the second loan is concerned, there are chances that lender would charge it off. A collection agency will then collect the dues from you. I would suggest you to contact your lender again and discuss your options.

To dallas,

Once you are delinquent on your mortgage payments, the lenders may start demanding the dues from you. However, they cannot cross the line or mis-behave with you.

Thanks.

Guest

I have a 1st and 2nd mortgage. I am up-to-date on the first one and was recently approved for a loan modification. I am behind on my 2nd mortgage for few months now. Can the 2nd mortgage foreclose my house? Please advise. Thanks!

smithsussane · Posted: Fri May 15, 2009 10:19 pm Post subject:

Hi Guest!

Welcome to forums!

The second mortgage lender has the right to foreclose the property but in most cases, they don't foreclose. They can charge off the mortgage and a third party collection agency will collect the dues from you. I would suggest you to speak to the second mortgage lender and check out if he can also modify your loan.

Feel free to ask if you have further queries.

Sussane

Guest

We have a 1st & 2nd Mortgage. We are awaiting a possible modification response to our first mortgage (30 yr. fixed at 7.5%-$250,000). Our 2nd mortgage is what is killing us (30 yr. fixed at 11%-$95,000). Our lender with our 2nd mortgage will not do a permanent modification, only a 6 month temp. modification. This is killing us. We want to keep our townhome and do what is right. But they refuse to work w/us. If our home goes to forclosure, we would need to find a rental. However, we cannot afford to rent a place and pay a judgement by the 2nd mortgage co. We are at a loss. We pay a total of $3,000 month w/both mortgages combined. Due to the economic crisis, our home's worth is now $80,000 less than it was appraised at originially. Our home is worth the value of our 1st mortgage only. We are hesitant about declaring bankruptcy. Ideally, we want a permanent, not a temp. fix to a situation that is unbearable. What would be your best recommendation?

jameshogg · Posted: Sun May 31, 2009 10:56 pm Post subject:

Hi Carol,

It would be best if you could negotiate with your second lender and convince him for a permanent modification. You can contact a loss mitigation expert who can speak to your lender for a permanent modification.

However, you should note that approving the modification is the discretion of the lender. If the lender is not ready for a permanent modification, then you'll have to go for a temporary modification.

Thanks

Guest

I am going through this to I owe more then my 1st and 2nd put together than my house is worth. 1st mortgage gave me a forbreance and I have been trying to work with the 2nd wamu since nov.2008 and still no motification and everytime you call they lost papers or said my motification was declined but they don't know why so they had me resend the papers again and they don't know who is working on my case it is a mess and I am getting no where. on top of this I had lost a home in a fire 3 years ago I guess 1 good thing I won't have much to pack up when it forecloses!!!!!!!!!!well except for my 4 children I feel horrible for them what can I say?

sara · Posted: Thu Jun 04, 2009 1:42 am Post subject:

Hi miamio,

You are really in a tough situation. Granting a forbearance or a foreclosure is the discretion of the lender. If you cannot prove your hardship to the lender, he may not accept your request.

I would suggest you to contact a loss mitigation expert and ask him to deal with your lender. He will negotiate with the lender on your behalf so that the lender accepts your request.

Take care.

Guest

Hello, I have lived in a property for 11 years and my wife and I can't sell the house because the property value. The city assessment is 118,000 and the realtor says the most I can get for our property is $114k. Our outstanding loan is 145k; which will give us a negative.

Now we want to leave this property and move out of state; how can we do this? Do you recommend (e.g., foreclosure, bankruptcy, or what?). Sad

Guest

I am able to pay my 1st mortgage; however, I cannot pay the 2nd mortgage due to loss of income. The mortgage company told me they would only work on a loan modification if I continue to pay the monthly payment. The mortgage company will not work on a loan modification even though I've provided all the documentation they requested for loan modification. I don't understand why the mortgage company expects you to make payments in order for them to work on a loan modification. They are now threatening foreclosure. Can anyone think of a solution to my problem?

Guest

i am in the process of foreclosing my home. After its sold in an auction and i still owe money to the 2nd mortgage can I declare bankrupcty then....

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.77 Dollars($)

Mary

Welcoem to the forum and sorry about your situation

The lender's want to make sure that you will be able to make payemnts after they make the modification. The documents you submitted need to prove that you are in hardship, but at the same itme your income needs to support the required payment after modification

Good luck and feel free to ask

All times are GMT - 7 Hours
Previous 1 2 3 4 5 6 7 Next
Page 4 of 7