Can you stop paying your second mortgage?
Should you stop paying your second mortgage?
The prevailing theory is that if your home is worth less than what you owe on your 1st mortgage it is highly unlikely that the holder of your 2nd mortgage will bring a foreclosure action against you.
Well, although it may be rare, we did have a homeowner come into our office this year whose 2nd mortgage was being foreclosed although his home’s value was less than the amount owed on the 1st mortgage. Additionally, lenders can, and some will, “sue on the note” (bring an action against you to recover the money you promised to repay them) rather than bring a mortgage foreclosure action.
On the brighter side, we have seen 2nd mortgage payments reduced by as much as 80% a month. Also, some lenders are willing to accept as little as 10% of what is owed on the 2nd mortgage as full payment. Additionally, if bankruptcy is an option, you might be able to “strip off” a totally unsecured second mortgage by filing a chapter 13 bankruptcy (see filing bankruptcy to save home from foreclosure).
We are often asked about paying and not paying second mortgages. Our answer: We can not advise you without knowing your specific situation and considering the particular options available to you. So, make sure you are fully informed before making a final decision.
As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in Mineola, NY. You can Contact us at (516) 858-2620 to speak with an attorney.
Default Judgment in Foreclosure
Your lender brought a mortgage foreclosure action and obtained a default judgment against you.
So, it’s game over and you are bound to lose your home to foreclosure, right? Not necessarily!
The scenario usually goes something like this:
Your mortgage lender brought a foreclosure action against you and allegedly had you served with a summons and complaint. You failed to hire a foreclosure defense attorney or respond to the summons and complaint. The lender proceeded with the foreclosure action and obtained a default judgment against you. Now your home is set to be sold at a fast approaching foreclosure auction.
This is not a good situation for any homeowner. However, you may still be able to defend the foreclosure action and save your home from foreclosure. You might even be able to get a loan modification before it is all said and done. To determine if any of this is possible, you need to contact a knowledgeable foreclosure defense attorney immediately. They will determine if there is still time and a chance to vacate the default judgment and defend the foreclosure action.
If you are facing this type of foreclosure or foreclosure in general, we may be able to stop the foreclosure and give you an opportunity to negotiate a loan modification. We were recently successful in stopping a foreclosure auction and getting the homeowner into a foreclosure settlement conference. The lender has expressed an interest in negotiating a loan modification for the homeowner.
Foreclosure Defense Attorneys in Mineola
As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, at 393 Jericho Turnpike in Mineola, NY 11501. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense lawyer.
Don’t hesitate, call a foreclosure defense attorney today! Because, “It ain’t over till it’s over.” –Yogi Berra.