Posted on: 15th Oct, 2009 08:03 pm
I am new to this forum. PLEASE is there someone out there help me to understand and decide what to do. I am acting emotionally and not with a good business head these days. I hope I have not made a huge mistake.
Here is the case: Property has equity in the first mortgage. Owe $120 Value $200. When the value of this property went sky high, I took out an equity loan of $100,000 to put into another property. After paying on it for five years, it was still $100,000 so I simply stopped paying it. It is now 180 days and they sent me a letter saying it is due in full and they will now not negotiate on the loan anymore.
1. Should I call and find out if it has been "discharged" as the rep told me it would be? Is it true that if it was "discharged" they will not foreclose but will give it to a collection agency? 3. Their letter states they will move to foreclose. Can they? I am not behind on the first mortgage. 4. Can I get them to "settle" the mortgage if I can come up with some money to do that? Perhaps 50%? 5. People tell me to stop paying the first also that it is hopeless and I will loose the property.
I would SO appreciate it if someone could direct me to understand what I should do to save this one and my other properties. ~~B.
Here is the case: Property has equity in the first mortgage. Owe $120 Value $200. When the value of this property went sky high, I took out an equity loan of $100,000 to put into another property. After paying on it for five years, it was still $100,000 so I simply stopped paying it. It is now 180 days and they sent me a letter saying it is due in full and they will now not negotiate on the loan anymore.
1. Should I call and find out if it has been "discharged" as the rep told me it would be? Is it true that if it was "discharged" they will not foreclose but will give it to a collection agency? 3. Their letter states they will move to foreclose. Can they? I am not behind on the first mortgage. 4. Can I get them to "settle" the mortgage if I can come up with some money to do that? Perhaps 50%? 5. People tell me to stop paying the first also that it is hopeless and I will loose the property.
I would SO appreciate it if someone could direct me to understand what I should do to save this one and my other properties. ~~B.
stopping payments does not mean that your loan would be discharged. if you do not contact the lender and set up a payment plan, the lender will either foreclose the property or sell it off to a collection agency. if the loan is sold off to a collection agency, then you would be liable to pay off the dues to them.
second mortgage lenders generally do not foreclose the property. if they do so, they would be liable to satisfy the first mortgage dues. you can contact your second lender and negotiate for some affordable payment plan to pay off the dues.
second mortgage lenders generally do not foreclose the property. if they do so, they would be liable to satisfy the first mortgage dues. you can contact your second lender and negotiate for some affordable payment plan to pay off the dues.