Real Estate Law
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Hello and welcome.
My name is XXXXX XXXXX my goal is to provide you with excellent service today. I am sorry to hear of your difficult situation. Before I can give you an accurate answer to your question, please provide the following additional information:
Is your second mortgage and equity line of credit or were the proceeds used to purchase the property? Is the second mortgage in default?
I look forward to assisting you as soon as I have received this information. Thank you.
I BUILT THE HOME THE 2ND. WAS USED TO XXXXX ITS NOT IN DEFAULT i,.owe 2 payements
Hello again, Terry, and thank you for the additional information.This sounds as though the second mortgage is an equity line of credit since you received the funds (they were not directly paid to a seller) and then used the proceeds from the loan to finish/improve your property.In that case, the second lender would normally be subordinate to the first mortgage holder and they would have little incentive to foreclose since any proceeds from the sale of the property would normally be paid to the first mortgage holder, leaving the second mortgage holder with nothing.Therefore, they may be willing to negotiate a settlement and release with you for a fraction of what you owe, if they are made aware that your first mortgage is under water.If not, I would not typically expect them to pursue foreclosure. In any case, if you did file for bankruptcy protection and did not reaffirm the second mortgage (but did reaffirm the first) and the holder of the second mortgage did not foreclose, then the second would normally be discharged in bankruptcy and you would owe nothing further. That is potentially the most attractive option, but it does put the biggest dent in your credit rating.
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so should i start the neg. with the lender or just wait for them, and if neg. are not satisfactory then start proceding with a bankrupcy att.?
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