Expert: Dick Dennis - 10/22/2008

Question
I just read your answer to another persons' question about having a 2nd mortgage and being upside down on the value of their home.  I am in a similar situation. I have a first mortgage where I owe $462,000 ($2,827/month) and a second variable rate HELOC @ $142,000 ($800/month).  I do not have savings to make up the difference if I were to sell the house - I would end up with about a negative $100++k difference in what I could get vs. what I owe.  If I stop making payments on the first and 2nd as you recommend, do I also stop paying the real estate taxes (do not escrow)?? These run me about $718/month!  I am so sad I have to do this, but my ex left 2 years ago after he masterminded a 100% financed "dream home" we built, and I'm left trying to hang on to my children's HOME. I'm exhausted and stressed and need to save more $$ for my retirement, not to mention having 2 sons in college and one more @ home.  I just can't handle $4500/month per month just for the house (not too mention utilities, maintenance, etc.). I'm 49 and have little to nothing saved for my own retirement and I'm scared I'll be living out of a cardboard box, or worse have to ask my children to take care of me! I'm drowning in "style", but drowning nonetheless!

Answer
It is interesting that you just wrote, Cindy, because I just got off the phone from a guy who works for a company that virtually eliminates second mortgages. Something having to do with the government. I would have to explain it to you, but it is legitimate. This is a nationwide company. At this point I do not know how his company can help, but if you want to give me a phone number or email address, I can have him or his company contact you . . . if you want. Just let me know at dixiedee13@aol.com. I wish you well.

Dick Dennis      dixiedee13@aol.com