Just because you pay your first and not the second, will not charge off any loans. Only if you go through foreclosure, or file a bankruptcy can a second be charged off.
Remember ,the lender will not be able to come after you for a deficiency in California.
Do not waste your time and money on "audits" They prove nothing, and after 4 years of cases against lenders, they have never lost a case due to an audit.
Of course they can ...but wont. Question! can you afford the 2nd mortgage and if not is it due to any hardships? ? If not consider counsel and file an action and seek to have both loans thrown out. An examiner such as NLS is a case development firm . Your file is audited and that is needed to substantiate your claims. You need to verify your real qualifying capacity to repay, integrity of the offering, instances for the lender straying away from printed guidelines, look for white collar fraud activity , set up the arguments for counsel if necessary in a court of law, comparing the two sets of loan docs and recorded instruments, interview past employees, agents and realtors for litigation purposes and set the file up for counsel. etc.
Finally we do an SEC public records search for the investment offering tied to your loans. Build it (the case) and they will come....Okay....For now you need to consider the lender may be liable for the loans made to you under predatory lending guidelines. It is usually the second mortgage piece that is the toxicity. (Check your loan docs and see where Wells is not the lender). Argument for having the debt DISMISSED!
The second is worthless and you cannot enforce a fraud or bad faith settlement. . Now was any portion of the loans proceeds for cash expenditures where cash out will be treated as a 1099 reporting issue .. .but that offsets with your higher "loan balances versus anticipated sale price. Its an offset to capital gains soâ€¦good luck!
Best of luck & Happy Holidays,
Randall Sandin, 843-209-9667, firstname.lastname@example.org