Question about underwater mortgages

Well you are underwater... you owe $208K on a home worth $133... By not making payments on the 2nd puts you in default, however it is very unlikely the 2nd will foreclose. For the 2nd to foreclose, they would have to satisfy the 1st lien, and that's not going to happen. They are more likely to accept a short payoff. Writing the state banking will not do a thing for you. I don't know what "results" your looking to achieve, but if it's to lower what you owe, you can start by making a cash offer to your 2nd. WilliamAcres.com

Any time you owe more on your home than it is worth, you are upside down.. You didn't indicate what you are hoping to acheive, but writing State Banking (now known as DFI or the Department of Financial Institutions will accomplish nothing. If you intend to stay in the home, your best bet is to try to negotiate with the second mortgage lender to accept a short settlement. Many lenders are willing to negoptiate, and others won't budge. You should try to locate an attorney who specializes in mortgage negotiations.

I would pleased to assist you on the phone if you wish 623-340-0934.It is unclear to me what are the issues in your complaint to the state banking department.From the circumstances you are describing, it would appear that indeed you may owe more money on the combined first and second mortgages that your home is currently worth. Not withstanding that does not change the financial position you have described of being delinguent on your second mortgage, which if not brought current will become in default and that will result in a foreclosure. There are obligations, situations, options and even solutions to this type of circumstances. Please feel free to call me at 623-340-0934 to discuss this further and to better understand what you may or may not be able to accomplish. Thank you for the opportunity to be of service to you, Korene Clopine-Seaman, Senior Mortgage Originator, WJBradley Mortgage Capital Corporation, 9237 East Via De Ventura, Scottsdale, AZ 85258, NMLS # 218520

Hello Jess,unfortunately you have a underwater mortgage, your current balance (combined 1st and 2nd mortgage) is higher than your property value. Is there a specific reason as why you have stopped making your payments on the 2nd mortgage? that will impact your credit rating badly, my suggestion is to work with your 2nd Trust Deed lender and ask them to either reduce their monthly payments or to sell you the note at a discounted price.