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After 6 months of no payments, at some point, the lender will realize that it is futile to attempt to collect as I do not want to deplete all of my reserves, every month I am in the negative. Would the 2nd force foreclosure as there might not be any equity with the foreclosure. We are virtually at a no equity situation. If we factor in the foreclosure costs, there would be no equity for the 2nd. What are my options?
Is there any scenario in which the 2nd will charge off the debt? Same situation, the lender will attempt to collect and threaten foreclosure (1st and 2nd with Citibank) and ultimately, it has to either charge it off or foreclose? If the 2nd lienholder charges off the debt, it will go to collections or judgement? Could I not then declare bankruptcy while continuing to pay on my first mortgage?