Is this info True (READ)

[Marlo74]

While researching online I found the following post by someone. How accurate is this information?

Do you have a second mortgage, Home Equity Line of Credit (HELOC) or reverse mortgage for part of the equity in your home while still retaining a primary mortgage? If any of these scenarios apply to you, another alternative you can take is to stop paying this subordinate loan.
It is imperative that you understand what position each of your loans are in and that you do not allow the loan in primary position to default. Generally speaking, the oldest loan you have is in primary position. If you took both a first and a second at the same time, generally the larger principal balance originally borrowed is in primary position.
Once you have determined which loan is in the junior position, you can cease from paying this loan. Collection calls will of course result and a lot of tough talk will be measured out, but at the end of the day the junior lien holder cannot initiate foreclosure proceedings without a subordination agreement from the lien holder in the primary position.
A primary position lien holder will not authorize a subordination agreement that would result in loss of payment to a loan in good standing. The junior lien holder will attempt to collect for usually 180 days of delinquency. Generally speaking, after 180 days of delinquency the junior lien holder will conduct a charge off of the debt, which will absolve you of the debt, but will hurt your credit in the equivalent manner that a foreclosure would.

[LMA142]

It isn't exactly telling you everything. The lender will probably "charge off" your debt on their books, however, what they are really doing is selling it to a debt collection agency for a fraction of the price. Then that agency can and will add fees to the amount you owe and then will garnish your wages/bank account to collect the debt. That is if the lender doesn't decide to handle the garnishment themselves, in which case, you still have to pay the debt, plus major legal and processing fees.
I would not advise anyone to take this route unless you are retired and your only income is social security (which garnishments can't touch). You would be better to contact your lender (if you are actually unable to pay rather than just trying to get out of the debt) and work out a deferrment.

[HopingtoFind]

A lot also depends on which state you're in.. in CA for example if 2nd is "purchase money"... in other words was used to purchase the property, and the property was your primary residence it is non-recorse and they cannot come after you.
If on the other hand it is recouse loan it still better and try and settle with lender for pennies on the dollar, unless you're willing to go through BK in order to strip it away. As was mentioned in the above post if the debt is not settled lender will just charge it off and collections will pursue it and try and garnish wages, etc.