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Bonnie Sterl…, Real Estate Pro in Simi Valley, CA

If a homeowner chooses to default on the second mortgage ONLY in California what are the possible out comes?

Asked by Bonnie Sterling, Simi Valley, CA Sat Aug 8, 2009

What are the likely outcomes in your opinion in our current financial climate?

I have a client who called and asked me this question today. The first is say 600,000, the second is about $60,000 or 10%. Market Value is about 500,000. The second was not purchase money but was for home improvement. The homeowner feels that defaulting will put them in a position to negotiate with the second, which has a high & variable interest, to get them to accept a small payoff.

Just looking for opinions. Thanks in advance for sharing. Have already advised client to seek legal and tax advice but curious what other agents/lenders have to say on the matter.

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Answers

1
Are you asking about a short sale? Or does the owner just want to "get rid" of the second (which is what is sounds like).

THey might want to try a loan mod on the second. I would not advise a client to default in any case.
0 votes Thank Flag Link Sat Aug 8, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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