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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Consequences of defaulting on 2nd Mortgage Posted by JK (the other JK) on December 17, 2009 at 7:36 PM In Reply to: 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? That's one strategy. Another strategy would be to lien strip the 2nd via Chapter 13 BK. Follow Ups: 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? : That's one strategy. Another strategy would be to lien strip the 2nd via Chapter 13 BK. [ 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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