What is the worst that would happen if I stopped payments on second mortgage? 6 Answers as of May 08, 2013

Mortgage was discharged in 2004 and have made all my mortgage payments. The home is worth less than what is owed on first mortgage.

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If there is no equity in your 2nd mortgage then you can file a chapter 13 bankruptcy to get rid of it or if you just stop paying, the 2nd mortgage can start a foreclosure but generally will not do so unless they have equity and would get paid in an auction situation.
Answer Applies to: New York
Replied: 5/8/2013
Niswanger Law Firm PLC
Niswanger Law Firm PLC | Steve Niswanger
A second mortgagee has a right to foreclose on the house, although anyone who purchases the house at the foreclosure sale would take it subject to the first mortgage. So, without knowing more about the balances on each mortgage and the value of the house, it's hard to predict how the foreclosure proceedings might shake out.
Answer Applies to: Arkansas
Replied: 5/8/2013
Stephens Gourley & Bywater | David A. Stephens
Assuming the second was discharged, the worst that would happen is they would foreclose on the home.
Answer Applies to: Nevada
Replied: 5/8/2013
Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
The second can foreclose on the house, but they cannot sue you so long as you did not reaffirm the debt after bankruptcy.
Answer Applies to: Arizona
Replied: 5/8/2013
Frank Law Group, P.C.
Frank Law Group, P.C. | David E. Frank
If fair market value is less than amount owed on first, through a ch. 13 bankruptcy plan you can probably get rid of the second.
Answer Applies to: California
Replied: 5/8/2013
    Stacy Joel Safion, Esq.
    Stacy Joel Safion, Esq. | Stacy Joel Safion
    It depends on many factors including whether it is a purchase money loan; chapter of bankruptcy; whether loan was scrapped.
    Answer Applies to: California
    Replied: 5/8/2013
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