Foreclosed question. Should I pay 2nd back?

Question

ok so my house is being foreclosed on the 1st. I also have 2nd which is only $20,000. I am trying to work with 2nd to pay them back. They say they can come after me on the loan. I am working with them to pay them back so my credit won't be as bad. What do you think?

Answer 1

call a short sale real estate agent ASAP. They can contact your lender and delay the foreclosure by submitting an offer from one of their investors & market the property to get a higher offer while your lender takes a couple of months to process the paperwork. In some transactions the homeowner stays in the home an extra 6+ months and sometimes does not pay the mortgage. The credit is damaged from the missed payments, but one transaction I was involved in, the owner wound up not paying his mortgage for a total of 15 months! I neither condone or recommend this, but he did it. If the short sale agent is properly trained, they can negotiate the 2nd to take what the first offers them, or a very reasonable payment arrangement of a greatly reduced amount, and make the first settle for whatever the sale amount is. Foreclosure is the worst thing that can happen to your credit, even worse than bankruptcy. A Foreclosure will lower your credit 250-350 points versus a short sale 80-120 points. I can find you a PROPERLY TRAINED short sale agent in your area. [e-mail] or Eric [phone].

Answer 2

If you're foreclosure happens and they sell..what is your intent on the balance on the 1st...you're still responsible for that...and it only goes away for good thru a bankruptcy. Personally..if you pay on the 2nd, and not the 1st..what's your point...Take the money and put it aside for a place to live. And I hate to say it...foreclosure is about as bad as it gets on your credit report...there won't be any.....my credit won't be as bad.  Either loan...1st or 2nd..they can sue, get a judgement and garnish....then what ????