80/20 loan

bad things happen to your credit when you default and it would be quite a few years before you are able to buy again. Find help getting a modification at: http://www.nfcc.org/FirstStep/firststep_03.cfm or call 800-388-2227

PS. You could consider refinancing but you need to qualify for the new mortgage. If there is any equity in your home that might make it possible to refinance both mortgages. If not, the first mortgage (80% part) might be able to be refinanced if it is eligible for a HARP loan.

Hi Sheila,Defaulting on a mortgage loan would not only hurt your credit but would also put you at risk of losing your home. Piedmont Housing Alliance (http://piedmonthousingalliance.org) is a local non-profit that may be able to give you some helpful information. And I am in Charlottesville and would be happy to talk it over with you at your convenience. Feel free to call me at 975-5626 x111. Regards, Jason

You've signed a mortgage and promissory note. You promised to pay on the 1st day of every month until paid in full. Regardless of the reason, if you do not make your payments, the house will fall into foreclosure. You will be removed from the home, and your credit will suffer greatly.

If you stop paying on the 2nd mortgage the 2nd mortgage company can initiate the foreclosure process. See if there is anyway for you to possibly qualify for a new refinance to lower your payments. Values may have come up enough for this to be possible. Check into all of your possibilities before accepting any foreclosure scenario. Best wishes, Sean