Received NOD on the 2nd mortgage 30 days behind

[00zx6r]

I received the NOD today after 1 month did not pay the 2nd mortgage (Ocwen). Our home value now is less than the 1st mortgage (Litton). I think the jr mortgage can forclosure our home but I dont think they can get any, right? I dont pay the 1st mortgage either (1 month) and working with them to get the loan mod but I am more want to wake or shortsale. Do you know how long more can we stay before the jr mortgage forclosure? We just want to stay as long as possible to save up.
Thanks.

[The Professor]

Additional information is needed. Please answer the following questions:

1. In what state is the property located?
2. For each loan on the property, identify the lender, current loan balance, and whether the loan was created at the time you purchased the property and if all loan proceeds were used to purchase the property.
3. Did your occupy the property as your primary residence?
4. What is your estimate of the current market value.

Daniel

[00zx6r]

Thanks for your relpy Professor Shays
1. California.
2. Litton 1st 305k and Ocwen 2nd 77k and both are purchase money.
3. Primary residence.
4. 220k

Thanks again,

[The Professor]

The holder of your second loan, if it is in fact a purchase money loan, is screwed. If they foreclose they take the property subject to the first loan. Since there is no equity beyond the balance owed on the first loan, well they are out of luck. You have a minimum of three months plus 21 additional days after the recordation of the notice of default, before a lender in California can complete their foreclosure.

Daniel

[00zx6r]

Thanks again Professor Shays!