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Can not afford to pay 2nd Mortgage-

Submitted by on Sun, 06/06/2010 - 12:00
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Please forgive me if I am posting this question in the wrong forum.
I'll be quick:
purchased home -2002 for $295,000.
Did not take long before value shot through the...you already know. At top selling value -$675,000 and every lender was willing to give someone a loan.
My boyfriend is 23 yrs my elder and came from down south where he was employed with same Employer for 25 years but in the past 7 or so years things have not been reliable. Two refinances he used solely to get bills "that were stacked" back on track and a bit more manageable.
At present;
1st Mortgage--interest only. :($420k bal.):
Second mortgage American General $75,000 bal.
American General also holds title to our car loan $10k (pd off 3 times during these rough years.
I suppose our Pool installation which we carry a bal = $35,000
We have tried hard and would never like being kicked out, but like I said things been tight. My boyfriend is on EDD and needs surgery but hopes to return to same job. I think otherwise, he is 67 and diabetic and experiencing muscle breakdown in legs mostly and I believe they he is much of a risk but can not be terminated "legally" or he hasn't been a team-player. Whatever, it's been 3 months and just asked back for Co. truck/phone. Etc..
We due have
Credit card debt between the two of us = under 15k but all in all we are on time with payments.
I have a Visa - Chase 7k maximum - Never maxed out and paid off twice but eight mos back I paid online and came back NSF. Serious mistake I knew this but interest shot up from 15 % to 32. I inquired after 6 months on time paymts to lower interest even a bit but was harshly explained that I DEFAULTED ON MY LOAN!! (I should not think about calling for at another 6 mo)
I apologize for my "being quick", while typing this it becomes even more clear to me the condition we are in.
MY Q: The Second Mortgage "American General"
Total owed = $75,k monthly bill $700 we have not paid in 2 mos - What peril would come in choosing this particular bill instead of the 1st... I would be grateful for anybody's thoughts.
We could not afford to pay property taxes now totaling close to 13 k and I realize dodging house paymts is not a habit most would consider smart but if instead the $400 mo to Green Tree (POOL) was to default could they come take our pool?
Apologize for dragging on, and on.
Thank You,
Paytan


Whether or not they could repossess your pool depends on on how attached it is to the property. If the repo men cannot remove the pool without causing serious damage to your property then they'll just go to court and get a lien on your house. Trust me, having a lien on your property for back taxes is MUCH worse, 'cause the government doesn't need to go to court to impose one. And the more liens you have on your property the more your house will go down in value and the harder it will be to sell it.

Foreclosure is tricky with second mortgages because it's second in line after the first mortgage. If the second mortgage lender forecloses they're going to have problems getting possession because of the first mortgage. If the second mortgage joins the first to the foreclosure (and every lender I've seen joins everyone they think has an interest even if they're dead. Seriously. I have seen dead people being foreclosed on) then the second lender would have to wait for their money until the first lender and the back taxes have been paid and may not get anything. The best thing I can suggest is to try and work out new repayment plans with both your lenders or consolidate your mortgages.


Submitted by OVLG Attorney on Mon, 06/07/2010 - 14:42

OVLG Attorney

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