Can a homeowner lose their house if they can’t pay their 2nd mortgage?
I can pay my first, but my second is at 10.50% (purchase 2nd heloc – took it out same time took out the 1st when purchasing the house so it’s not a loan I got later to use as a cash for home improvement or whatever).
My credit is poor so I can’t qualify to refi. I don’t have the $ 1100/month to pay for the 2nd any more due to loss of income, with a balance of $ 109,800. Lender is BofA, and this is in CA. Any idea what will happen? Will they put me in foreclosure? It is an investment property so I don’t think I can qualify for any of the modification programs. Should I might as well stop paying the 1st too if not paying the 2nd results in foreclosure?
both the 1st and 2nd are with the same lender. Balance on first is 850K, 2nd is about 110K, and the house is worth about 800K today (was purchased for 1.2mil)