Posted on: 10th Aug, 2009 01:39 pm
What if I stop paying the second, but keep paying the first? I am trying to get the bank to settle on the second by shifting some to my first and forgiving the balance. If they foreclose, they will not get anthing close to this deal. I guess I want to know what the consequences are and if they would foreclose because of the second when the first is being paid and I am willing to negotiate on the second by increasing the first to above current market value. I am about 100-130K underwater. Any advice or opinions would be appreciated.
hi eoddan,
if you stop paying the second mortgage dues, the lender would charge off the loan. a charge off does not mean that the lender has forgiven the dues. he has just sold off your account to a collection agency and they will in turn collect the dues from you. this will remain as a negative item on your credit report for the next 7 years. it would be better if you could inform the second lender about your hardship and negotiate a repayment plan with them.
thanks
if you stop paying the second mortgage dues, the lender would charge off the loan. a charge off does not mean that the lender has forgiven the dues. he has just sold off your account to a collection agency and they will in turn collect the dues from you. this will remain as a negative item on your credit report for the next 7 years. it would be better if you could inform the second lender about your hardship and negotiate a repayment plan with them.
thanks