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Will 2nd mortgage holder foreclose?

Posted on: 15th Dec, 2008 07:55 pm
my house is worth about the same as my first mortgage(250,000). I have a 2nd for 125,000. I've heard of people filing bk on the second and staying in the house. I really don't have any other debt other than small car payment and small balance on cc. Would I have to file bk should i just stop paying the loan? They would lose money if they foreclosed right now. By the way the 2nd was a refi of the original heloc and i took it out for more $. Both 1st and second are interest only. I went from making 80,000 to 45,000 a year recently.
Any advice?
thanks
the second mortgage holder is not likely to foreclose; to collect their money, they will have to be in first lien position, and that means they will have to pay off the first mortgage to do so. 2nd lien holders are very unlikely to foreclose on you, pay off the first mortgage, and then sell the home at a sheriif's sale to collect their money. they would never get their money back, and they know it. most 2nd lien holders are just holding their breath, hoping their customers will make their payments.

have you tried calling both of the lenders to negotiate lower payments because of your changed situation ?
Posted on: 15th Dec, 2008 08:01 pm
welcome sdmc,

i don't think filing bankruptcy is a good option for you. this will hamper your credit badly. inform the lender about your hardship and check out the ways to lower your loan payments. to know more, check out the following link:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Posted on: 15th Dec, 2008 09:12 pm
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