2nd Mortgage Question

[Fallonedward]

Our home is underwater by about 20K on our 1st mortgage and by about 80K on our 2nd. We have filed and are past our 341 and since hubby's UI is now done, I can not afford the core bills.

To enable us to have food money I was looking at not making the 2nd mortgage payment this month.

Does anyone know what my ramifications would be?

I have no money to move, so I need to stay here to hubby finds work and we can save for deposits and moving expenses.

[Pandora]

Fallen - is there a reason you're still paying the 2nd if you've filed and had your 341? Did you reaffirm both mortgages or something? Is the 2nd more than the 1st?

[Fallonedward]

I did not reaffirm either 1st or 2nd mortgage. I wanted to make sure that I would be safe in stopping to pay the 2nd prior to doing so. thanks

Fallen - is there a reason you're still paying the 2nd if you've filed and had your 341? Did you reaffirm both mortgages or something? Is the 2nd more than the 1st?

[Fallonedward]

Pandora, also meant to tell you that the 2nd is only for 85K and the first if for 215K and the house is only worth 203K (not even sure its worth that since it needs so many repairs)

Fallen - is there a reason you're still paying the 2nd if you've filed and had your 341? Did you reaffirm both mortgages or something? Is the 2nd more than the 1st?

[Pandora]

Hi Fallen,

Yeah, you should be safe in not paying the 2nd...but know that they can still enact their right to foreclose at any time. It's highly unlikely..but they can if they want to and the 1st agrees. Is your intention to eventually walk away from it or to keep it? I guess thats the bigger question you need to answer as if you're planning in keeping it and doing the pay and stay - then I'd save the $ from the 2nd mort. payment up as much as possible and try to settle somewhere down the line in exchange for a release of the lien.

[Fallonedward]

I want to do the stay and pay and stop paying the 2nd so that I have monies saved to offer a settlement.

Hi Fallen,

Yeah, you should be safe in not paying the 2nd...but know that they can still enact their right to foreclose at any time. It's highly unlikely..but they can if they want to and the 1st agrees. Is your intention to eventually walk away from it or to keep it? I guess thats the bigger question you need to answer as if you're planning in keeping it and doing the pay and stay - then I'd save the $ from the 2nd mort. payment up as much as possible and try to settle somewhere down the line in exchange for a release of the lien.

[tcreegan]

Hi Fallonedward,

Not only will the 2nd not make any $$, they actually lose $$ if they intiate the foreclosure (they have to pay the foreclosure costs) Stop paying the 2nd, b/c you didn't reaffirm they can't even bother you about not paying. Save some $$ further down the road and ask them to settle with you.

Good move not reaffirming!

Tom in Colo

[Fallonedward]

Tom: thanks so much for the help

Hi Fallonedward,

Not only will the 2nd not make any $$, they actually lose $$ if they intiate the foreclosure (they have to pay the foreclosure costs) Stop paying the 2nd, b/c you didn't reaffirm they can't even bother you about not paying. Save some $$ further down the road and ask them to settle with you.

Good move not reaffirming!

Tom in Colo

[aquavir]

My experience (for what it's worth):

http://www.bkforum.com/showthread.php?71489-Settlement-with-SLS-for-2nd-Mortgage-after-BK-7

[Fallonedward]

Thanks so much...that is awesome and I hope to do something similar. Hubby is currently working a contract position paying a bit better then UI but not enough to really save for a settlement offer. My hope is to be able to offer a settlement offer once hubby is gainfully employed and we can save some money...

This forum has and continues to be an amazing source of information for me as I continue this journey. I love being one year out of BK but until hubby gets a real job we are just in a coasting pattern waiting for our fresh start to happen, grateful for where we are at and looking forward to a more prosperous future.

My experience (for what it's worth):

http://www.bkforum.com/showthread.ph...age-after-BK-7