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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Consequences of defaulting on 2nd Mortgage Posted by Ann on December 17, 2009 at 6:51 PM Hello, With the decline of property values, I heard one attorney suggest to his client in a case where there are 2 mortgages on a property, that the client can default on the 2nd mortgage, take the hit on the credit, and then contact the 2nd and negotiate a short payoff. The attorney indicated that in most cases, the 2nd would not pursue a foreclosure proceeding b/c it would cost too much and even afterwards, the sales funds will most likely not be enough to pay the 2nd off. Do you see any problems with that line of reasoning? (Aside from the moral/ethical issues). If speaking strictly from the perspective of financial decision-making, would that be a viable option? Follow Ups: Re: Consequences of defaulting on 2nd Mortgage JK (the other JK) 7:36 PM, 12/17/09 (2) Re: Consequences of defaulting on 2nd Mortgage Ann 7:40 PM, 12/17/09 (1) Re: Consequences of defaulting on 2nd Mortgage JK (the other JK) 8:20 PM, 12/17/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Hello, : With the decline of property values, I heard one attorney suggest to his client in a case where there are 2 mortgages on a property, that the client can default on the 2nd mortgage, take the hit on the credit, and then contact the 2nd and negotiate a short payoff. : The attorney indicated that in most cases, the 2nd would not pursue a foreclosure proceeding b/c it would cost too much and even afterwards, the sales funds will most likely not be enough to pay the 2nd off. : Do you see any problems with that line of reasoning? (Aside from the moral/ethical issues). If speaking strictly from the perspective of financial decision-making, would that be a viable option? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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