Stop paying personal loan, 1st or 2nd mortgage?
Date: Fri, 09/18/2009 - 10:02
I just went through a divorce and am in serious financial trouble. I'm falling behind on all my payments and am just going to have to let something go and I'm not sure which. The two choices I have are the house or a personal loan through citifinancial. I owe about 98k on my 1st mortgage and 26k on my 2nd but my house may sell for 110k. I still owe about 18k on my personal loan. If I could sell my house, I would because I'd like to move anyway. If I quit paying my personal loan, that may give me time to sell the house once the market picks up, but will I be in legal trouble or will it just kill my credit? If I decide to give up the house, which loan (1st or 2nd) should I stop paying or does it matter? Thanks for the help.
Ok, you are upside down on you home and you have a personal loan
Ok, you are upside down on you home and you have a personal loan. Here is the thing, your credit will be affected if you do not pay the mortgage or if you do not pay the loan. If you can pay your mortgage, that is what you pay first. If Citifinancial decides to sue you, they can do this, but there are things you can do to help protect yourself and it's a little too detailed to go into on a forum. Manily because everyones situation is different and I don't want to make a generalized statement that may not be appropriate for some. My advice would be to seek help with an attorney who is licensed in your state. We do provide this for some states, but not all.
