Posted on: 26th Jan, 2009 08:49 am
My husband and I owe around 350 on our first w/ suntrust and around 110 on our second with citi (we refinanced our 2nd about 5yrs. ago to pay off debt) I have not worked for 2 years, we had a baby and when it was time to go back to work I could not find a job that will pay enough to cover the day care. My husband is in the car business and his pay has been cut in 1/2. We can afford our first but not the second. We have made both mortgage payments on time by my parents help, but they can no longer help us. I stopped paying all of our credit card bills about 6months ago, they were all in my name, so my credit is shot but my husbands credit is still good. There are not alot of recent home sales in our area. I would have to say our home might be worth what we owe or a little more. We do not want to sell it (it would take too long) or give it up. We talked to our first mortgagt and they said they could not do a refi. because there is not enough income. I called cit and talked to some lady in India who I could not understand and she said to fill out a hardship form online and someone will in touch with us in about 45 days.
I guess my question is what will happen if we stop paying our second, but keep paying our first? We live in Maryland if that makes a difference.
I guess my question is what will happen if we stop paying our second, but keep paying our first? We live in Maryland if that makes a difference.
hi kimberlyb,
if you stop paying the second mortgage, the lender will have the right to foreclose the property which will ruin your credit. you can fill out the hardship form online and check out what options they are offering you. also you should note that if the second lender forecloses the property he will have to pay off the the first lender as well.
if you stop paying the second mortgage, the lender will have the right to foreclose the property which will ruin your credit. you can fill out the hardship form online and check out what options they are offering you. also you should note that if the second lender forecloses the property he will have to pay off the the first lender as well.
Thank you for your reply adonis. Do you think Citibank will be more willing to work with us if we stop paying. It seems like I have read alot on the net that unless you are behind on your mortgage the mortgage co. wont work with you. I have called both co. and once I tell them I am not behind they really have nothing to say to me.
If you want to apply for a short sale or a deed in lieu foreclosure, then you will have to convince the lender about your hardships. If you deliberately stop paying the payments, then you will face a hard time convincing them about your hardship and they may not be ready for a short sale or a deed in lieu.
If you just stop paying Citi, you risk foreclosure. Since you said your house is worth both mortgages, and a little more, they will most like foreclose. If there is no way you can pay both mortgages any longer, you will probably need to sell the home, paying off both mortgages, and try to get as much for the house as you can. This will protect your husbands credit which will be vital in buying another house. But, I don't think that just stopping making payments on a house with equity is a good strategy to qualify for hardship. Besides, that too will damage your husband's credit.
Thanks for the help
Hi, my problem could be described like that: I do have a townhouse for which I owe to two banks an amount of $300.000 combined.
Lat year though I bought another house, a foreclosure property, I fixed it and now I am living in it.
My problem now is related with the townhouse value, which decreased dramatically, a similar house next to me being sold with about $90.000.
At this time the townhouse is rented but along with what I receive rent I still need to put down in every month about $700 to pay mortgage. For me now the townhouse is a permanent loss, the house is deteriorationg from tenants and simply I want to return it to bank but I don't think that they will accept it because the value. Anyway I called them to tell about my hardship, I am not behind any payments yet but I am so closed to be. In reply, the bank sent me a letter saying that they intend to put lien on my other property. I know that they have no reason to put lien since I am still making the payment- but is so hard to make these payments though.
In other words, can be any escape from this situation? Can in any case the banks take only the townhouse like a deed in lieu and leave my other house alone?
Thank you for your time
Lat year though I bought another house, a foreclosure property, I fixed it and now I am living in it.
My problem now is related with the townhouse value, which decreased dramatically, a similar house next to me being sold with about $90.000.
At this time the townhouse is rented but along with what I receive rent I still need to put down in every month about $700 to pay mortgage. For me now the townhouse is a permanent loss, the house is deteriorationg from tenants and simply I want to return it to bank but I don't think that they will accept it because the value. Anyway I called them to tell about my hardship, I am not behind any payments yet but I am so closed to be. In reply, the bank sent me a letter saying that they intend to put lien on my other property. I know that they have no reason to put lien since I am still making the payment- but is so hard to make these payments though.
In other words, can be any escape from this situation? Can in any case the banks take only the townhouse like a deed in lieu and leave my other house alone?
Thank you for your time
Hi daniel
If you are still current on your mortgage payments, then the lender can neither place lien on your other property nor sell it off. You can apply for a deed in lieu with the lender wherein the lender will forgive the deficient amount resulting from the sale of the property. The lender will not even place lien on your other property. However, as you are current on your payments, I doubt whether the lender would accept your deed in lieu.
Thanks.
If you are still current on your mortgage payments, then the lender can neither place lien on your other property nor sell it off. You can apply for a deed in lieu with the lender wherein the lender will forgive the deficient amount resulting from the sale of the property. The lender will not even place lien on your other property. However, as you are current on your payments, I doubt whether the lender would accept your deed in lieu.
Thanks.
yo know you can keep the creditors hands from your house if you divorce your husband and put the house under his name so you can declare bankrupcy and have those pricks off your back after a couple of years.
I had started bankruptcy procedure , half way thro paying the lawyer who will not file until paid in full. My mortgage payments date reset by day of the week rathar than actual date and I have 2 payments per mth.The calender changes made 2 payments due in the same pay period. I paid it by selling anything I could. From year on in, the mortgage will be due befoe I am paid. I tried to tt my bankruptcy lawyer, he won't speak to me. I am considering closing my checking act so the lender cannot withdraw the payment, and mailing it. I need to run 1 payment behind til I catch up on other bills. I will put my house on the market, price it low, sell and pay the mortage.Realtor knows I have 60 days to do so. If I do this, can I still file Chapter 7 to get rid of Credit card debt? If not, can I just stop paying them? What can they do to me in MA? I am facing retirement with no savings and need every penny I can save for surviving on Social Security
hi guest,
you will be able to file chapter 7 bankruptcy though you list your property in the market. however, as you are planning to file chapter 7 for your credit card debts, you can even include your house in it. you can surrender the property to your lender who can sell it off and recover the dues. i hope you'll not reaffirm the payments. in that case, the lender will not be able to come after you for the deficient balance resulting from foreclosure.
you will be able to file chapter 7 bankruptcy though you list your property in the market. however, as you are planning to file chapter 7 for your credit card debts, you can even include your house in it. you can surrender the property to your lender who can sell it off and recover the dues. i hope you'll not reaffirm the payments. in that case, the lender will not be able to come after you for the deficient balance resulting from foreclosure.