What happens if I cannot pay my 2nd mortgage? Will I lose my house?
by Mortgage Rates on Wednesday, November 3rd, 2010 | 2 Comments
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This is a serious situation, which you don’t need me to tell you. Right now you need to become best friends with the bank and communicate exactly what’s going on with your finances. Banks don’t want to go through foreclosure; they loose money, get a house they don’t want and incur all sorts of bills.
Be very clear with your bank and go to them with a specific plan as to how you can get yourself out of this jam. You’re going to need to pay off both loans and since it’s with the same lender they may be willing to work with you to save the deal.
Short answer to your question is yes, if you default on your /20 you can loose your home since they will foreclose to sell the property to cover that loan value.
Talk to the bank, alot.
Step one – talk to your bank find out what your options are.
Step two – tell dude to get a job. Running your own business is awesome, but if you aren’t making any money – then you need to get a job to bring some in.
Step three – don’t take out second mortgages on houses, and avoid getting yourself in debt whenever possible. Chop up credit cards, and consider getting a job yourself to help pay down some of the debt(although you will have to figure out something for the kids).
Good luck – the current economy is sluggish – and probably not the best time to be starting up a construction business. The situation you find yourself in trying to pay a mortgage and 2nd mortgage that you can’t afford is where a lot of people are at right now.
It’s probably not going to change at least until after the elections – and its hard to say what will happen after that.
Good luck!! You need it.