Home Loans and Support

Should I Stop Paying My Second Mortgage?

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by DO NOT DRINK THE KOOLAIDE, Oct 19, 2012.

  1. DO NOT DRINK THE KOOLAIDE

    DO NOT DRINK THE KOOLAIDE LoanSafe Member

    My situation as follows:

    First Mortage with HSBC: $521K @5.375. Payment is 3337.43 per month(aprox. $1000 principle. aprox. $2337.43 interest). HSBC ownes and services the loan.

    Second Mortgage: HELOC (Interest Only) at 2.5%: $442K. Payment is aprox. $925 per month interest only). HELOC is with Chase. I am not sure but I think the own it and service it.

    Zillow Value: $580,875

    Esitmated Actual Market Value From Knowlegable Real Estate Agent: $750K

    Was my primary residence but relocted overseas to find work but currently unemployed again.

    The property is rented and under lease until September 1, 2013. I receive $3400 month in rent. Including taxes, mortgage payments, and upkeep I am losing about $25K a year in terms of cashflow if I continue renting. If I stop paying my second I will be losing $15K per year to continue renting out my property.

    I am current on all credit cards and mortgages and have a 750 credit score. But I do not care about my credit score very much because I live overseas and do not plan to return to the USA.

    I AM CONSIDERING STOP PAYING MY SECOND MORTGAGE AS ADVISED MY THIS FORUM. tHEN WAIT FOR CHASE TO COME TO ME TO PROPOSE A SETTLEMENT AND NEGOTIATE FROM THERE. HOPEFULLY, THE RESULT WILL BE END UP WITH A SMALL SECOND MORTGAGE AND ALSO NEGOTIATE THAT MY CREDIT BE CORRECTED AS IF I HAD MADE ALL MY PAYMENTS ON THE SECOND MORTGAGE.

    THE ULTIMATE OBJECTIVE IS REACH A FAVORABLE SETTLEMENT ON THE SECOND, THEN BECAUSE I WILL NOT HAVE A LTV ISSUE IN ORDER TORE FINANCE, I CAN REFINANCE AT MUCH LOWER RATES, AND CONTINUE TO RENT THE PRPERTY OUT LONG TERM UNTIL THE HOUSING MARKET RECOVERS.

    BASED ON MY SPECIFIC CIRCUMSTANCES CAN ANY ONE TELL ME IF THE ABOVE IS THE BEST COURSE ACTION. IF NOT PLEASE TELL ME WHAT IS WRONG WITH MY THINKING. pLUS WHAT DO THINK THYE CHANCES ARE FOR SUCCESS BASED ON MY SPECIFIC CIRCUMSTANCES. ANY AND ALL COMMENTS WOULD BE APPRECIATED.<!-- google_ad_section_end -->
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Welcome to the forum and thank you for joining.......

    I am sorry, but we can not advise any members on whether or not they should stop making payments. That is a personal decision that only you can make. What you may want to do first, since you are thinking that Chase both owns and services your second lien, which for this program it would need to be, is to see if you are eligible for the recent National Mortgage Settlement.

    If you still have other questions about the settlement, call us at: 1-866-372-6901

    Call Center Hours (All times Eastern)
    Monday-Thursday: 8:00 AM - Midnight
    Friday: 8:00 AM - 11:00 PM
    Saturday: 8:00 AM - 5:00 PM


    If you find that your loan is not eligible for that program, then you can look through the first post in the following thread to see the steps other members are following to settle;

    http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd.html

    Also, posting your question once is all that is needed.
  3. Cat Damiano

    Cat Damiano Mortgage Wars

    I have answered your thread here................
  4. walkin

    walkin LoanSafe Member

    Lol, I dig your username!

    I think the answer to your question lies within your username, if you consider that the "koolaide" the banks have been serving us is that we must pay them, or else they will ruin our credit scores....wooooo, shaking in my boots :) FYI, my credit score is now trashed, but I can now buy groceries with money that I have, instead of using a credit card. It was kindof a no brainer for me, but I was a little nervous in the beginning.

    So, I agree....DO NOT DRINK THE KOOLAIDE!!! lol
  5. DO NOT DRINK THE KOOLAIDE

    DO NOT DRINK THE KOOLAIDE LoanSafe Member

    Dear Cat,

    Thanks for the feedback.

    Ok, I undertsand no one tell me whether to stop paying my second mortgage or not.

    But can anyone tell me if in my post if I have missed any of the negative aspects of taking this course of action and what are the chances of achieving the objectives listed?
  6. Cat Damiano

    Cat Damiano Mortgage Wars

    If you call Chase and your loan is not eligible for the National Mortgage Settlement, then you could follow the strategy thread. As far as your objectives list, you will not be eligible for a refinance without a waiting period after you settle for less than the amount owed, but you will not be paying the second lien at that point so perhaps that will help with the positive cash flow for rent.

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