2nd Mortgage

[paulf8]

Will GMAC forclose on the second mortgage if its 100 percent underwater,I"m current on the first

[spidge]

Good question. I am about $100k under on my first alone and my heloc is with CW.

[walkthaplank]

Both lawyers I spoke with not only said no, but hell no. Not only would they not make money, they would be spending a lot of money to do it.

The one lawyer I spoke with told me he had people who hadn't paid their second in over a year.

[BKINAZ]

So the threatening letters I got saying they were going to forclose is...100% impossible, 50/50, on their part? Are (when) they going to come after us?

We are $70k (officially) upside down...after 4 months of not paying...ignore the letter? BTW I did talk to them yesterday and did laugh at them telling them if they were that stupid come after me...but I am trying to make some money to pay them.

[HHM]

I wouldn't go so far as to say it is 100% impossible, but it is highly unlikely.

Legally, the 2nd mortgage has the right to foreclose, but...
Practically, because the home has no equity that actually secures the 2nd mortgage, the 2nd mortgage lender will not foreclose because it costs them money to do so.

However, you need to keep in mind, that the lien will sit on your home, accruing interest etc. If you ever go to sell your home or refinance, you will have to deal with the 2nd mortgage.

[getmeoutofhere]

I have GMAC on a second. Totally under water. So far, they have threatend to foreclose, but since they have not equity stake, it has been nothing more than threats. They DO still have a lien....not sure what will happen at this time.

[BKINAZ]

but I am trying to make some money to pay them. That means...I told them I am trying to make money to pay them...just to slow them down. Surviving is my first goal...them...not that high on the list.

HHM...thanks. Can you give me an idea of their probable steps, maybe even guess timing.

With me...

4 months- Letter threatening to forclose.
6- months- ?

When does the lien come into play and is wage garnishment on their part an option?

[spidge]

Have they sent you a notice of intent to foreclose? I am going into 120 days on my heloc and have yet to get any more than a bill from them. They call and I keep telling them I have file in the modification department, but they say they cannot see any info. Its online and I am looking at it is my response. Then I ask if they need the website. They have yet to offer any kind of settlement, but the later I get the more likely they will start considering. Next call I think I will make them an offer.

[AfraidOfBK]

PAUL - is your second mortgage a Heloc? My second is just part of a loan with 1st and 2nd mortgage (both with chase) Ive missed pmts on the second for three months and they sent me a letter NOD....
I have missed two months of pmts with the first and heard nothing...no phone calls except fr from the second.

Can they foreclose in my situation? Is the first simply a month behind? The second keeps asking for money...will me paying delay htings?