Posted on: 11th Oct, 2008 12:40 pm
Our first is $240,000 with Countrywide and our second is $40,000 with Ocwen( "www.ocwencustomers.com" ). We bought the house for $300,000 and it was reassessed last year at $225,000 and is currently probably valued in the $200k to $225,000 range.
What would happen if I stopped paying my second? From my understanding if the second wanted to foreclose they would have to assume the first, which would put them another $40k in the hole. Which they would not want to do?
What action could our second take against us?
What can they do to collect?
How would it affect out credit immediately?
If we are planning to stay here another 3 to 5 years what impact would it have on our credit long term?
Thanks in advance for all of your help.
[size=9:43d59072f6][color=Red:43d59072f6][Link deactivated as per forum rules. Thanks.][/color:43d59072f6][/size:43d59072f6]
What would happen if I stopped paying my second? From my understanding if the second wanted to foreclose they would have to assume the first, which would put them another $40k in the hole. Which they would not want to do?
What action could our second take against us?
What can they do to collect?
How would it affect out credit immediately?
If we are planning to stay here another 3 to 5 years what impact would it have on our credit long term?
Thanks in advance for all of your help.
[size=9:43d59072f6][color=Red:43d59072f6][Link deactivated as per forum rules. Thanks.][/color:43d59072f6][/size:43d59072f6]
hi bradralls!
it may happen that a senior lien forecloses, the junior lien holder can send a representative to attend the auction. this is to make sure that the property is sold at a price such that the second lien is also paid off. thus they will look to the fact that both the mortgages are paid off. other than this the lender can also charge off the loan to a collection agency.
to know more about second mortgage charge off, visit the following link
http://www.mortgagefit.com/know-how/secondloanchargeoff.html
thanks,
jerry
it may happen that a senior lien forecloses, the junior lien holder can send a representative to attend the auction. this is to make sure that the property is sold at a price such that the second lien is also paid off. thus they will look to the fact that both the mortgages are paid off. other than this the lender can also charge off the loan to a collection agency.
to know more about second mortgage charge off, visit the following link
http://www.mortgagefit.com/know-how/secondloanchargeoff.html
thanks,
jerry
Hi Bradralls,
I don't feel it's a good idea to simply stop paying your second mortgage. Off-course if the second goes for foreclosure, it will have to pay the first mortgage which I think is rare.
The second mortgage lender can offer you an alternative repayment plan which you can afford. It may charge off the debt if at all you can't pay. However charge off doesn't mean you don't owe it. You can settle the charge off by paying a negotiable amount to the second lender.
good luck
I don't feel it's a good idea to simply stop paying your second mortgage. Off-course if the second goes for foreclosure, it will have to pay the first mortgage which I think is rare.
The second mortgage lender can offer you an alternative repayment plan which you can afford. It may charge off the debt if at all you can't pay. However charge off doesn't mean you don't owe it. You can settle the charge off by paying a negotiable amount to the second lender.
good luck