foreclosure with a second mortgage

What should I do in my mortgage situation?

I have a mortgage that is about to increase 1800 a month. My first loan balance is 360000 and I have a second mortgage for 113000. I am figuring out ahead of time that when the increase happens it is unlikely that I can keep up with my payments. I have already called my lender about loan modifications but they refuse to do it. I have never had a 30 day late mortgage payment ever. My payments will be roughly 4300 a month. What are the repocussions if I purchase a 2nd home before the first house is even late and then let the 1st house go to short sale or foreclosure and keep the house with the lower mortgage payment I can afford.? I just want to have real estate before my credit is shot for 7 years. Any advice? My house is worth less then I owe just to be clear probably at least 60,000 less.

Tough situation. Here’s what I would do. Its going to cost you at least 20,000 to get another house, if not more, and you have the expenses of moving and the disruption to your life. You should call your lender and tell them that you want to pay down your mortgage and modify the loan into a lower rate at the same time, and also ask them if they will consider a principal reduction on your loan. Tell them exactly what you earn each month and be prepared to document it.

If that doesn’t work, you could try to refinance your first mortgage with a FHASecure loan. It will allow you to refinance the first, but not the second in your situation. The rate on the first should go down to about 6.5%. Be prepared to document your income in that process also.
Then, work hard and earn as much money as you can until the real estate market recovers in a few years and you can refinance both mortgages or sell.

Commercial Loan Modification Versus Foreclosure

A commercial Loan Workout is one option for business owners facing difficult financial circumstances. Commercial Loan workouts are often pursued after the business owner has already started missing their commercial Loan payments. Commercial Loan modifications are promoted as a safe alternative to foreclosure. However, a foreclosure is so devastating to the business owner, it should be considered financially irresponsible for the business owner and the bank to not pursue a commercial Loan workout before even speaking the word foreclosure. Unfortunately, the responsibility falls completely on the business owners to educate themselves and to seek the help of a commercial Loan Workout professional to walk them through their options.

Some business owners may not be educated on the harmful long-term effects of a foreclosure. They may be ready to throw in the towel, and they see a foreclosure as an easy way to just walk away. A commercial Loan Workout can give the business owner the time they need to sell their business for a profit. A commercial Loan workout can enable the business owner to avoid foreclosure, get lower monthly payments and turn a profit while selling a turn-key business.

Without a commercial Loan Workout, the bank will start the foreclosure process, which may include having a receiver come in and manage the business while the bank attempts to sell it and reclaim some of their investment. Receivers, however, do not provide the kind of high quality management a business needs to thrive. A business could actually drop in value while under the care of a receiver. The best way to avoid this nightmare is to contact a commercial Loan Workout professional at: Commercial Mortgage Renegotiation and pursue a commercial Loan Workout immediately.

foreclosure with a second mortgage