What happens if I stop paying?

[bakergrl]

Filled BK and closed almost a year ago did not reaffirm 1st or 2nd. House now about $80,000 underwater between both loans. Same lender for both, they do not want to help because of BK and started calling after 2 months late. Had an injury, on disability and not making full income but paid up the late 2 months.

What happens if I stop paying the 2nd mortgage or just pay them both late? So basically I am 1 month late on 2nd and 14 days on 1st. If I send them check for mortgages and then wait a month or 2 to send another one can they foreclose? I don't really want to keep house but really don't want to have to pay full amounts until back to work.

[screentest]

Hi Bakergrl,

If you BKd both mortgages then you are under no obligation to pay them anything. If you fail to make the payment then eventually they will foreclose; however this could take a year or longer depending on your state and lender. A second lender will not foreclose on an underwater mortgage so paying them anything is throwing your money away. Additionally, because your mortgages are BKd, they don't even report missed or late payments to any credit bureaus either.

It your choice; however if the inevitable outcome is to leave and allow them to foreclose then stop paying and save money.

Just my two cents.
ST

[bellessima]

I did a ride thru and am pay both the first and the second. Are you saying I should stop paying on the second? I want to stay in the home as long as the mtg does not increase. I am in AZ/Wells Fargo

Merci

[espo1357]

I did a ride thru and am pay both the first and the second. Are you saying I should stop paying on the second? I want to stay in the home as long as the mtg does not increase. I am in AZ/Wells Fargo

Merci

you must be in a chapter 7, right?

Well, the second just become unsecured, but they will put a lien on the prop.

You might want to consider walking, and just save the money, by living rent free. OR, if you really want the home, just go for a settlement on 5 to 10 cents on the dollar for the second when it goes to collections.

Walking makes so much sense, but I don't know your situation.