Posted on: 03rd Mar, 2009 05:13 pm
My first mortgage is 249,000. The 2nd mortgage is 124,000. The 1st is current, the 2nd is in default. The home is only, if lucky, worth approximately 200,000. What do you think will happen if we continue to keep our 1st current?
I can't see a 2nd mortgage buying out the 1st only to lose even more? I have heard that 2nd mortgages have even handed over the debt to debt buyers/debt collectors?
I can't see a 2nd mortgage buying out the 1st only to lose even more? I have heard that 2nd mortgages have even handed over the debt to debt buyers/debt collectors?
Hi shespy!
Welcome to forums!
If you do not pay the debts of the second lender, then he will have the right to foreclose the property. However, in order to do that he will have to pay off the dues of the first lender.
If the second lender does not foreclose the property, he may even sell off the mortgage to a third party collection agency who will in turn collect the dues from you. Charging off your mortgage to a collection agency may also affect your credit score.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If you do not pay the debts of the second lender, then he will have the right to foreclose the property. However, in order to do that he will have to pay off the dues of the first lender.
If the second lender does not foreclose the property, he may even sell off the mortgage to a third party collection agency who will in turn collect the dues from you. Charging off your mortgage to a collection agency may also affect your credit score.
Feel free to ask if you have further queries.
Sussane
I find one solution to this is if you are paying to your first lender very well and have a good track record can you request your first lender to buy the mortgage from the second one and then settle down the amount in installments.if you are a good in deal making then surely you will get a good response for this from your first lender. :wink:
"if you are a good in deal making then surely you will get a good response for this from your first lender."
i hate to put it this way, manoj, but that is some of the worst advice i've seen handed out on this forum.
no first mortgagee with sense is going to even listen to such a "deal," let alone assent to it.
shespy, if you continue to pay the first mortgage, they'll leave you alone. by neglecting the second mortgage, you do stand the risk that the second mortgagee might bring action against you, which would only make you miserable. they can also, as you've noted, charge off the loan and refer the account to a collections agent, who would also make your life miserable, but in a different way.
the latter is probably the most reasonable way for the lender to act in the scenario you've presented. if, however, you can find a way to catch up on your payments, you may be able to salvage that loan along with your credit rating, which will suffer if they charge you off.
i hate to put it this way, manoj, but that is some of the worst advice i've seen handed out on this forum.
no first mortgagee with sense is going to even listen to such a "deal," let alone assent to it.
shespy, if you continue to pay the first mortgage, they'll leave you alone. by neglecting the second mortgage, you do stand the risk that the second mortgagee might bring action against you, which would only make you miserable. they can also, as you've noted, charge off the loan and refer the account to a collections agent, who would also make your life miserable, but in a different way.
the latter is probably the most reasonable way for the lender to act in the scenario you've presented. if, however, you can find a way to catch up on your payments, you may be able to salvage that loan along with your credit rating, which will suffer if they charge you off.
I've been told by a credit agency that they can negotiate my equity line. Costs me 9,000 to the creditor one lump sum to negotiate the line. I would be given a 1099 for the remainder 78,000 as income for 2010. His fee is 8,700 to do this! Yikes.
My question: What can you do about the equity line when the same creditor/bank has both loans - just negotiated successfully for an affordable home loan on the primary? Are they willing to listen to negotiation on the second. My house is underwater.
My question: What can you do about the equity line when the same creditor/bank has both loans - just negotiated successfully for an affordable home loan on the primary? Are they willing to listen to negotiation on the second. My house is underwater.
Hi maclagan!
Welcome to forums!
It will be completely the lender's discretion whether or not he would negotiate with you in regards to your second loan. If the lender is not ready for the same, then he may charge off the loan and then a collection agency can contact you for the dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be completely the lender's discretion whether or not he would negotiate with you in regards to your second loan. If the lender is not ready for the same, then he may charge off the loan and then a collection agency can contact you for the dues.
Feel free to ask if you've further queries.
Sussane