Easy Home Equity Loan

I got behind on my second mortgage (my first is current) after my wife lost her job but she has recently re-gained employment. Now the second has been turned over to a law firm, who is asking for us to catch up payments (with no loan forebearance, modification of any kind) and if we don’t comply, they will continue with the legal process, which I understand to be a judgment.

What happens at this point? I have been told by some that if a judgment is entered by your second mortgage lender, they can’t really do much unless the house sells at some point. Is this correct? With the current market conditions, my house is underwater, so "short-selling" would only benefit the first mortgage lender.

Can they attempt to seize assets (what little I have)?

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I have two mortgages. The issuer of the 2nd mortgage has filed foreclosure documents. The first has not because I haven’t fallen behind as much with them. On the foreclosure document itself, the 2nd bank refers to itself as "the sole, true and lawful holder of the bond…" and they refer to the county in which the house is located as "possible subordinate lienor". No where does the document make mention of the bank who holds the first mortgage. To make this even more interesting, when I call the bank holding the primary mortgage, THEY THEMSELVES cannot tell that they are the primary lien holders on my house. They keep asking me "who’s holding your first?" Could it have something to do with the fact that both the first and second mortgages are HELOC accounts? Could the issuer of a second mortgage take my house right from under the issuer of the first mortgage? Thanks very much for taking a minute:)

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I owe 70,500k on my first mortgage and 35,5k on my second mortgage.My friends are telling me not to pay my second mortgage because the company will not pay off the first mortgage to seize the property because it would cost too much with the whole tanking housing market. Is this true. What could happen if I stop paying the second? Will the second mortgage company pay 70,500 and eat the 35k to foreclose on my house? I am very leery about this! My friends said they did it and it worked. I just don’t know what to do. I already work two jobs and the bills are a DAILY struggle!

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I have a 5/1 Interest only loan. Resetting 09/2011.

I want to refinance only my first mortgage from an ARM to a 30 year fixed. (It’s currently 8K)
I want to keep my second as is (2K ARM)

Due to declining home values, I have very little to no equity in our home. However, I just want to refinance the 1st (which would be plus or minus about 80% of my current home value).

I have both loans through Wells Fargo.
WF say they can’t do anything unless I have 10% equity.
So I’m looking around for ideas.

I have: Good credit. No car payments. No student debit. No credit card debt.

Any thoughts or other ideas.
I’m happy to keep my 2nd as is.
Just want to get the 8K fixed at a low rate.

Thanks

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I want to refinance just my 1st Mortgage.
I have a 5/1 Interest only loan. Resetting 09/2011.

I want to refinance only my first mortgage from an ARM to a 30 year fixed. (It’s currently 8K)
I want to keep my second as is (2K ARM)

Due to declining home values, I have very little to no equity in our home. However, I just want to refinance the 1st (which would be plus or minus about 80% of my current home value).

I have both loans through Wells Fargo.
WF say they can’t do anything unless I have 10% equity.
So I’m looking around for ideas.

I have: Good credit. No car payments. No student debit. No credit card debt.

Any thoughts or other ideas.
I’m happy to keep my 2nd as is.
Just want to get the 8K fixed at a low rate.

Thanks

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Wow, sad story. Bought a second mortgage thinking it was a first. Have bought first before and usually have all the information right, but screwed up for the fix and flip we thought we were buying. Now find out the first mortgage being foreclosed is about the same as the value of the house.

Now as I understand, the second was actually three times what we paid. Would not get that back in auction, but wonder if there is some way to sell it again?

Not sure what we can do except:
1. Take our losses and learn a lesson I wish I hadn’t
2. Offer an amount on the first mortgage to see if we can cut our losses with a fix and flip anyway.

Is there another way out? Has anyone bought a second mortgage without buying the first as well and got their money (or profit back)? Painfully awaiting any knowledgeable answers.

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I have a first mortgage for 9,000 and a second mortgage for ,000… both are locked rates at 6%. This is my primary property and live in California. The current home value is 0,000….

I would like your opinions, experiences, or advise on whether I should stop paying my second mortgage. I will continue to pay my first mortgage. Both mortgages are current and have never been late over the past 6 years. Divorce has caused my financial need to lower living costs.

PS: I have heard that the bank who has the second mortgage may charge off the debt as the home is worth less than the amount owed on the first – and the first has too be bought out to claim on the second in California.

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Here’s our situation. We need to get out of our current house and into one we can both afford and fit into. If it sold today, it would likely pay off the first mortgage, or very very close. But we have a second mortgage that there’s no way it’ll pay off.

The second is with CitiMortgage (who hasn’t been exceedingly helpful at this point), and I’ve asked them to convert it to a unsecured loan os we can sell and get into a house we can afford, and they weren’t sure (well the folks on the phone weren’t sure) if they could do that.

I pointed out to them that currently, they hold zero equity in this house, and if we couldn’t make the payments, they would get zero in foreclosure. Same situation in bankruptcy.

The thing is, we don’t want to just cancel out their portion of the loan, we are willing to pay it back, but just can’t do it right this moment. Foreclosure and Bankruptcy aren’t an option, nor is doing what a lot of Americans are doing and just walking away from a loan we signed for. Unlike most Americans today, we have a little more character than just walking away from a house unless we are literally faced to choose between feeding the kids and paying the second mortgage.

That being said, do you have any ideas how to get them to convert the second mortgage into an unsecured loan at the same terms? It already IS an unsecured loan, because they have no equity. Once this is done, and the lien is released, we can sell, pay off the first, and get into a house we can afford and fit into.
I’m in contact with them, though even the folks in their loss mitigation department didn’t think that it could be done, but we’ll find out. I hear some folks have had success personally contacting the managers and executives involved, giving them a *brief* overview, and asking them if they could help get it resolved.

One thing I’ll note is, these folks probably used to do things like this from time to time, or at least used to work somewhere where they were involved in the dirty day-to-day duties, and they like to feel like they’re still able to make wise decisions in cases like this.

I should add also, I’m willing to have them attach a lien to the new house if they want also, if that’s possible. Though there won’t be any equity to do that.

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