Paying the first but not the second - Loan Modification Forum

caldwellb02 · 09-09-2009, 03:11 PM

Hi. Me again - the one that's not scared about Deutsche bank.

Have a new question. I'm in CA. Have an 80/20 loan on my primary residence. The original loans - no refinancing. The house is worth less than the first mortgage.

I'm thinking that the second is now unsecured; the investor would have little reason to foreclose. I'm thinking of buying myself a little time and only paying the first (which is still more than 40% of my gross) while I continue trying to get a mod. What do you think? Any glaring downsides?

Paul Molinaro Esq. · 09-13-2009, 03:10 PM

NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE.

When a second mortgage is completely unsecured, it might seem that there is no point in that lender foreclosing. However, California has statutory law(s) which might require the lender to pursue the security first. In practice, though, my firm has seen people not paying their second mortgage for quite a while the lender only slams the credit scores.

- Paul

09-09-2009, 03:11 PM	#1 (permalink)
caldwellb02 Senior Member Join Date: Nov 2008 Location: Northern CA Posts: 1,764 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Paying the first but not the second Hi. Me again - the one that's not scared about Deutsche bank. Have a new question. I'm in CA. Have an 80/20 loan on my primary residence. The original loans - no refinancing. The house is worth less than the first mortgage. I'm thinking that the second is now unsecured; the investor would have little reason to foreclose. I'm thinking of buying myself a little time and only paying the first (which is still more than 40% of my gross) while I continue trying to get a mod. What do you think? Any glaring downsides?

09-13-2009, 03:10 PM	#2 (permalink)
Paul Molinaro Esq. Attorney Join Date: Mar 2009 Location: 980 Montecito Drive, Suite 206, Corona, CA 92879 Posts: 133 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Paying the first but not the second NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE. When a second mortgage is completely unsecured, it might seem that there is no point in that lender foreclosing. However, California has statutory law(s) which might require the lender to pursue the security first. In practice, though, my firm has seen people not paying their second mortgage for quite a while the lender only slams the credit scores. - Paul __________________ ______________________________ Paul J. Molinaro, M.D., J.D. Attorney at Law, Physician, Broker ______________________________ Fransen & Molinaro, LLP 980 Montecito Drive, Suite 206 Corona, CA 92879 pmolinaro@LoanLaw.net 1-888-756-2652 ______________________________ The information contained in this post is NOT to be taken as legal advice. My posts are for general information and educational purposes only. If you need legal advice, please contact an attorney.

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