[lisadaisy36]

Ok, please only answer if you really know, no guessing!

Ok We have a 1st mortgage and a 2nd mortgag with another company. If we stop paying on the 1st, but keep paying on the 2nd I understand that the 1st goes into Foreclosure. What happens to the 2nd mortgage? Since it will no longer be secured by the home what happens? Is there an advantage to keep paying ont he second or should we just stop paying on both??

[labman]

Both are secured by the home. There will be no point in paying on the second. Second mortgages are subordinate to first mortgages and the second lienholder is second in line to get paid during a foreclosure.

Be very careful and find out if your second mortgage is a recourse or a non-recourse loan. If it is a non-recourse loan it will get wiped out during foreclosure. If it is a recourse loan they are going to come after you for the balance, come after your assets and your wages. I believe it is less common to have a recourse loan, but double check.

You would be better off trying to arrange a short sale with your two lenders. They still both take losses, but often times those losses are less and they are willing to do it as a loss mitigation strategy.

Really you'd be better off if you can continue to pay for both of them and keep living in your house...

[admin]

If you do not plan on keeping the house you should discontinue paying on both mortgages. Although you should request a To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. rather than just walking away, I did not understand your statement about 1st and 2nd same company or not? If same can do a DIL but if different not possible to do a DIL. There is always an opportunity to do a To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily..