Expert: Dick Dennis - 9/25/2008

Question
HELLO,
I live in Florida and own a house which worth $270000. I have a 1st mortgage with $170000 and 2nd one with $196000 balance. I am making the payment on 1st one but do not have the money to make the payment on 2nd one. Can the 2nd one go for foreclosure? Also how can I buy some time(3 to 4 year)since in 3 to 4 year my and my husband car payment will be done and then we can afford to pay the 2nd one.

Thanks

Answer
With the new financing laws scheduled to take effect Oct. 1, Niloofar, it might be a very good idea to talk with the lender of the 2nd mortgage and tell your story. They might be able to do something, like maybe lower the interest rate or maybe even knock off some of the mortgage balance. I suggest you do that right away because if you start skipping payments they could and just might put your house in default which is the preliminary steps to going into foreclosure. No matter if you make the first mortgage payments. Maybe the lender will discover your house is worth less than $270,000, leaving them vulnerable to having a foreclosure on their hands. Please understand that lenders do not want to foreclose just as much as you don't want to lose the house to foreclosure. So go and talk to the president or the vice president in charge of mortgage loans and see what can be done. I do wish you well.

Dick Dennis