Posted on: 15th Apr, 2009 03:54 am
i'm in the process of talking with my second mortgage lender. since the house is worth less than the 1st, doesn't sound like they'll forclose. i have great credit and been in the house since 2005 without a missed payment. i do have extra money in stocks, but that is rainy day money. right now i can pay my first no problem, but paying the second is taxing and after unemployment runs out i'll really start bleeding money if i continue to pay.
i've seen that if you stop paying they may 1099 you on the balance or send it off to collections. i just don't know what to do or expect with this. i want to keep my good credit, but i'm also willing to take a 1099 if they can't go after me for this money after the house goes back up in value. i want to do the right thing, but i also need to look out for myself. friends have said i should've stopped paying the second a long time ago.
any suggestions or help in what i can expect if i stop paying the second would be greatly appreciated.
$365k on the first
90k on the second
house is worth maybe 330k
thanks,
-brent
i've seen that if you stop paying they may 1099 you on the balance or send it off to collections. i just don't know what to do or expect with this. i want to keep my good credit, but i'm also willing to take a 1099 if they can't go after me for this money after the house goes back up in value. i want to do the right thing, but i also need to look out for myself. friends have said i should've stopped paying the second a long time ago.
any suggestions or help in what i can expect if i stop paying the second would be greatly appreciated.
$365k on the first
90k on the second
house is worth maybe 330k
thanks,
-brent
Hi mglmstr1
welcome to the forum
It is OK if you stop the second mortgage as the person (second lender) will not be able to put lien on your house alone. he need to do along with the first lender. If you are regular with first one then surely you need not worry further.
Once you get employed you can again start paying second mortgage.
welcome to the forum
It is OK if you stop the second mortgage as the person (second lender) will not be able to put lien on your house alone. he need to do along with the first lender. If you are regular with first one then surely you need not worry further.
Once you get employed you can again start paying second mortgage.
Such a great and easy answer... I sure hope the bank goes for that. That's going to be the first thing I request. This solution would be the best. Sounds like no credit hit and they'll work with me.
thanks again for the quick response!!!
-Brent
thanks again for the quick response!!!
-Brent
Hi mglmstr,
I would suggest you to speak to your second lender and apply for a loan modification. You can write a hardship letter to the lender explaining your financial situation. If the lender accepts your request, then he will lower your interest rate to give you a payment plan which you can afford to pay off. However, you should note that the lender may increase your term of paying the loan.
Take Care.
I would suggest you to speak to your second lender and apply for a loan modification. You can write a hardship letter to the lender explaining your financial situation. If the lender accepts your request, then he will lower your interest rate to give you a payment plan which you can afford to pay off. However, you should note that the lender may increase your term of paying the loan.
Take Care.