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Bobbie Files' Blog

By Bobbie Files | Agent in 02780

2nd Mortgages & Equity Lines..To Pay or not to Pay???

In these clearly troubled times, paying the mortgage is sometimes a decision between  Are you sinking in debt?feeding your children or paying for your home.  No one should have to make that choice…….I know which one I would pick for my family!

If you have a 2nd mortgage or a home equity line of credit (HELOC), I want to caution you on not making those payments, especially if you are trying to short sale your home.

Lenders of a 2nd mortgage or HELOC after 6 months of no payments, charge these accounts off.  They write them off as bad debt and piranha debt collection companies buypiranha debt collectorthese loans for pennies on the dollar.  These piranha, aggressive companies are no where near as negotiable to deal with as the original lender!!

MOST – not all – of the lenders involved in short sales (assuming you have a justifiable hardship), are far more negotiable and forgiving of the debt remaining on the short sale.  The piranhas want more money from you than the 1st lien holder will contribute.  They are notorious for wanting promissory notes, and they VERY RARELY agree to waive their deficiency rights.

As tough as your financial times may be, and fully understanding that you may be counting your pennies daily, I strongly recommend that you do not allow the charge off to happen.  Make a payment every other month or so.  Doing so will, more likely than not, prevent them from charging off this debt.

Bobbie Files, C.D.P.E.
Certified Distressed Property Expert
Your Bristol and Plymouth County Realtor
508-238-5000  x.296 Office
508-521-9480                Direct / SMS
888-570-9907               Toll Free Direct Fax
bobbie@MARealty1.com Email

Visit my website at www.BerkleyMass.com
Visit my YouTube Channel at http://www.youtube.com/user/bobbiefiles
Join My Facebook Communityhttp://www.facebook.com/bobbiefiles.realtor

Search for Berkley Ma Homes at: http://BerkleyHomes.BerkleyMass.com

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For those struggling to pay your mortgage payments please visit:http://shortsales.berkleymass.com

Certified Distressed Property Expert

Comments

By Dan Derito,  Mon Jun 27 2011, 19:14
Good post, Bobbie. It's just too bad that so many homeowners who are in trouble don't know how to defend themselves, then just throw in the towel and give up.
By Tni LeBlanc, JD, MA, Broker,  Tue Jun 28 2011, 04:02
As a fellow CDPE and Short Sale Agent, I agree with this advice. Nothing ruins a short sale like a second mortgage transferred to the greedy "recovery" department. In my experience, they request more to settle.
By Bobbie Files,  Tue Jun 28 2011, 04:34
Thank you for your feedback, Dan and Tni. I hope this message reaches struggling homeowners.

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