Posted on: 13th Jan, 2010 09:25 am
i am thinking about not paying the second mortgage. the house is 130k underwater the first is 80k the secons is 48k.
so my question is this; if it's not in the best interest of the second to buy a the 1st loan which is underwater would they send it to collections?
my second question is; if it goes to collections do we then file bankruptsy to have the debt cleared?
i can't see the 1st going into foreclosure if the payment's are current.......
which leaves me with one last question; would the 1st take the second's loan balance for a fraction of he cost and foreclose? of is it a money game and they won't help the 2nd because there is no bennifit to do so????
thanks d.
so my question is this; if it's not in the best interest of the second to buy a the 1st loan which is underwater would they send it to collections?
my second question is; if it goes to collections do we then file bankruptsy to have the debt cleared?
i can't see the 1st going into foreclosure if the payment's are current.......
which leaves me with one last question; would the 1st take the second's loan balance for a fraction of he cost and foreclose? of is it a money game and they won't help the 2nd because there is no bennifit to do so????
thanks d.
Hi hlavender,
If you do not pay the second mortgage, then the lender has the rights to foreclose the property. However, in most cases, they don't do so. Rather, they would charge it off. The collection agency will in turn collect the dues from you. i don't think the first lender will ever be bothered to help the second lender as there's no benefit of the first lender in doing so.
If you do not pay the second mortgage, then the lender has the rights to foreclose the property. However, in most cases, they don't do so. Rather, they would charge it off. The collection agency will in turn collect the dues from you. i don't think the first lender will ever be bothered to help the second lender as there's no benefit of the first lender in doing so.