Question I have a property that I bought in CO (with an 80/20 mortgage) 5 years ago and lived in until August of last year. I am now living in GA because of a job. I am renting out the CO property. I am not behind on any payments yet, but it is a struggle as my mortgage payments are about $300 greater than my rental income. Coincedentally, my 2nd mortgage payment is $302 My question is, what course of action would the 2nd mortgage company usually pursue when one is delinquent? Garnishment? Bad Credit?
Answer Hello.. this is a complicated question as it varies from bank to bank... you will need to call the bank and explain the situation and see what they can do to help you. In most cases if you default on a second mortgage they will foreclose on the property and ruin your credit. However, in todays economy they are more likely to work with you to find a solution to help you pay it! Hope this helps. Please let me know if you should need anything further.
