house in ridethru-- if I stop pmt on 2nd do they report lates?

[Tom_Mi]

Will my credit rpt get dinged with lates if I halt pmt on the 2nd?


***House was IIB****


Thx,
T

[JRScott]

It'll still show as IIB, are you planning to walk away now? If so then it won't show any worse, and if not even if your a little late it'll still show as IIB I believe.

[Tom_Mi]

my plan is to save $$ for my next house, and rebuild my credit.

I'm thinking it'll be cheaper than rent to just pay my first on the house... and the bank for the 2nd would be foolish to foreclose becausethe house is worth 40k less than the 1st loan.

but if the bank with the 2nd dings me for lates during this period, my credit won't improve.

[OhioFiler]

They can't "ding you with lates". You don't owe them anything.

[bk2009]

They can't "ding you with lates". You don't owe them anything.

So, if you don't reaffirm anything, is it perfectly acceptable to continue paying the first and not paying the second? Won't the eventually foreclose? I'm confused. Sure, right now the secondary gains nothing by foreclosing as the first loan is worth more than the house is worth, but eventually (and this may be years down the road), the primary should be worth less than the house is worth.

So, say at some point they sell, does the second get paid off if they sell at a profit? Or, if they stay long term, it's probably worth paying, right?

We have a second as well and I'd love to quit paying it after we file! That's why I ask.

[OhioFiler]

So, if you don't reaffirm anything, is it perfectly acceptable to continue paying the first and not paying the second? Won't the eventually foreclose? I'm confused. Sure, right now the secondary gains nothing by foreclosing as the first loan is worth more than the house is worth, but eventually (and this may be years down the road), the primary should be worth less than the house is worth.

So, say at some point they sell, does the second get paid off if they sell at a profit? Or, if they stay long term, it's probably worth paying, right?

We have a second as well and I'd love to quit paying it after we file! That's why I ask.

There was a great thread covering lien stripping 2nd mortgage in chapter 7 a couple weeks ago. Do a search. It's a fascinating new concept. I'm debating whether we'll continue to pay our 2nd for the same reason. My biggest concern is both the 1st and 2nd are held by BofA.

[yoyoma51]

We have the same concern. Still plan on paying first, but not second. The problem is the are BOTH with GMAC.

Anyone had experience doing this when both mortgages are held by the same lender?