[Hippie Tree Hugger]

mortgage with two different banks? When it forecloses, we're certain the sale will not cover the first mortgage, let alone the second, as the house isn't worth near what she paid now. So what happens? Will she be responsible for the difference on the first? And what will happen to the second, will she still be responsible for that as well? This is in Florida.Please no rude or hateful comments. They bought within their means, her husband has some serious medical problems that put him in the hospital for 2 months and he lost his job. They are good, hard-working people, that fell on some hard times.

[Rocky Mtn High]

If the house was the collateral for both loans, she likely won't owe anything after foreclosure. Laws are likely different in various states, do a search on google or yahoo for your laws in your state.Just did a search, she may be screwed.

[Darryl A]

Responsibility is one thing, and quality of life is another, stop beating yourselves up over something you can't control.Stop making payments NOW, and start save your money.Most of the nation is in this mess and banks and mortgage are not doing what they have been paid to do.When it's time sign the house back over to the owner (ie the bank or mortgage company).File bankruptcy on both the first, second, medical bills and any taxes that are three years old or older.Take a deep breath and start over.Trying living beneath your means, it's lass stressful and you'll both be a lot happier.

[FAH-Q]

for peace of mind file bankruptcy......a condition of the loan was to put up collateral.....if the bank sells it for less than they loaned you you still owe the money...but they gotta spend big money on lawyers to go to big court not small claims. and they are over 100% sure you can't pay it anyway..they win a judgment it is good for 10 years...but every 10 years they can renew it for another 10 years...judgments and taxes can't be discharged through bankruptcy

[bartsimp]

Filing bankruptcy is a last resort and time-consuming. First of all, they might be able to pay off one of the mortgages in its entirety and one of the banks may be more negotiable than the other on the terms of foreclosure. Not enough info here to make the optimal recommendation.