Posted on: 07th Jan, 2009 10:28 am
I have a question and need help on what to do. My Roomate and I both own the house. His name is on the first mortgage, mine is on the 2nd one. I need to get out of the 2nd mortgage. If I forclose on the 2nd mortgage what would happen to the 1st mortgage? How bad does a forclosure hurt your credit score. Any help would be appreciated or who to talk to about this. Thanks
hi mayhem,
if the second mortgage lender forecloses the property, he will have to pay off the first mortgage company. so generally, the second mortgage lenders do not want to foreclose the property. as far as credit effects are concerned, a foreclosure will lower your credit score by 250 points.
if possible you can ask your room-mate to refinance the second mortgage in his name.
if the second mortgage lender forecloses the property, he will have to pay off the first mortgage company. so generally, the second mortgage lenders do not want to foreclose the property. as far as credit effects are concerned, a foreclosure will lower your credit score by 250 points.
if possible you can ask your room-mate to refinance the second mortgage in his name.