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Walking away - what happens to 2nd?

Posted on: 18th Oct, 2010 06:51 am
I have a 1st and 2nd mortgage that is 'upside-down' (i.e. Home value far less that what is owed).
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What happens with the 2nd mortgage if I chose to simply stop paying both mortgages and plan to 'walk' away' from the home in 3-4 months?
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I am aware of what will happen with my credit and am OK with that. I just need to know my liability on the 2nd if I stop paying everything & just walk away(?)
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Thank you.
Anyone?
Posted on: 18th Oct, 2010 11:04 am
hi guest,

the second mortgage lender can charge off the mortgage and sell it off to a collection agency who will in turn contact you for the mortgage dues.

thanks,

jerry
Posted on: 19th Oct, 2010 04:00 am
If you can try to make a deal with them, since they will sale the mortgage to a collection agency for pennies on the dollar, ask them if they can do that with you, and if they do, make sure they sign a document stating that they will not come back later asking for the ballance. Start offering $0.10¢

Hope it helps.
Posted on: 19th Oct, 2010 12:31 pm
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