I want to walk away from my second mortgage . I cannot find who owns it . So I cant rife . What could happen ?

Asked over 1 year ago - Pico Rivera, CA

My second makes my home underwater , the interest is at 7 Want to rife It started with countrywide than bank of America and is being serviced by Greentree . Was able to rife my first from 6 to . 25%

Attorney answers (3)

  1. Justin Drayton Graham

    Contributor Level 13

    3

    Lawyers agree

    Answered . There are a number of ways to get rid of a second mortgage. You can settle for pennies on the dollar, or you can get rid of the whole amount in bankruptcy. Alternatively, you could negotiate a modification of the loan. There may be an assignment of the deed of trust in the public records which indicates the current noteholder. Alternatively, you can request the identity of the noteholder from the servicer, Green Tree. In any case, you don't need to know the identity of the noteholder to get rid of it. Green Tree is your point of contact.

  2. James Carl Eschen III

    Contributor Level 16

    Answered . If you simply stop paying, the holder of your second may foreclose. It could do so now, which would make sense only if it bought out the holder of your first, or it could wait until you paid off your first. It could also just wait until you sold or refinanced the property, at which point you would have to pay it off.

  3. Linda Calderon Garrett

    Pro

    Contributor Level 12

    Answered . I agree with Mr. Gramham. My two cents is this: I have known some homeowners whose home is extremely "underwater" do nothing--includle not pay the 2nd mortgage. In some instances, I have known the second lien-hold to "forgive" the debt because they realize they have no practical basis to foreclose on the homeowner, e.g. the second lender would get nothing because there would not be enough even to pay the balance of the first loan--thus, zero incentive to pay for the foreclosure-related fees. In other words, some folks have considered a "wait an see" approach as an option.

    PLEASE READ--before emailing, commenting or calling: As a rule, I do not respond to "comments" that are designed... more

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