Hi, I could use some advice regarding my 2nd mortgage with Chase. I've started a strategic default on my property with the following details:
Value of home: ~$150k
1st Mortgage (Citi): $240k
2nd Mortgage (Chase): $30k
Never refinanced, 2nd was 10% at time of purchase.
I just want to be rid of the property which will never come back to value.
I did not make a payment in May. Citi called routinely until the end of May asking when I was going to pay, didn't do anything. Chase has had someone (and it's the same person each time) call from (I think) their collections department. I talked to him once on the phone and basically said I wanted to foreclose. He said in so many words that it doesn't matter what I want to do, I had to pay Chase. I said the loans were purchase and therefore non-recourse. His response was to keep returning to "that only applies if Chase participates in the foreclosure, and we won't". I said that everything I've read contradicts that, etc. Ultimately he said that if I don't pay in some vague timeframe then they would charge the loan off as unsecured and... it goes to collections? Not sure if it meant Chase's collections or outside.
Basically, I was under the (possibly mistaken) impression that since both of my loans were purchase money, as a CA resident they can't do anything. Am I wrong? I thought that once Citi forecloses then that's it (outside of possibly needing to send a letter back reminding them of the law).
Additionally, what happens if Citi takes forever to foreclose? Could Chase do something before then? I can afford to pay Chase, so should I until Citi forecloses and then let it go?
Thanks for any help! It's very frustrating and unnerving!