(This story was submitted today by an Arizona homeowner who hasn’t paid their second mortgage in over six years) – I am not going to say I handled this correctly in the past- but it is what it is. I live in Arizona

Had money issues in 2008. Worked out a modified loan on 1st with Chase in 2010 and got it refinanced in 2012. I currently owe about $214, 000 on the first. 2nd was a cash-out loan but its odd because on my credit reports its just listed as a “mortgage loan’- not a Heloc or anything. I have not made a payment on this since 2008- I am not sure if its Aug or Dec 07. My credit report shows I was delinquent 30 days since Dec 2007 but last payment may have been made Aug 2008.

With that said- I have received zero contact from Household for many years. Just today I received a notice my loan was being transferred as of June 15 to the dreaded Green Tree. The second has a balance of 90,000 plus.

Looking online I don’t think my house is worth much more than 190,000 or 200, 000. I know/thing I am rapidly approaching the six years statue of limitations on this or I may have already past it depending on what the date of default would be- however I also know 2nd this is not going away.

Current house value 190,000-200,000
Current 1st 214,000
defaulted 2nd 90,000 plus

With that said- any advise?

Be proactive or just wait for Green Tree – who appear to be SOB’s to reach out for me? With that said- I don’t want to lose the house- but I also don’t want to pay 90g for a house that is clearly upside down by 100,000 plus. I don’t see the home prices going crazy out here anytime soon as it appears to have leveled out for the most part. I have good income and my credit is pretty here in the decent besides this aging 2nd.

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Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.