Quick Answer: How Can I Settle My Second Mortgage For Less?

How can I get rid of my second mortgage?

Pay more than the monthly payment due each month on your second mortgage if it carries a higher interest rate than your primary mortgage.

Take out a refinance loan if you have enough equity in your home.

Compare your monthly income to your expenses.More items….

How can I get rid of a second mortgage without a loan modification?

Quite simply, when a home is worth less than the balance of a first mortgage, federal bankruptcy law — at least in most states — permits a homeowner to treat a second mortgage like an unsecured credit card and discharge it in a Chapter 13 bankruptcy.

How do I settle my second mortgage after Chapter 7?

Answer: A common strategy for dealing with post chapter 7 bankruptcy 2nd mortgages is to approach the 2nd mortgage with a settlement offer in exchange for the 2nd mortgage lender removing the lien. But before we discuss that option, understand the risks. The second mortgage need not settle; doing so is voluntary.

What happens if second mortgage is not paid?

Foreclosure In case of default, the holder of your second mortgage may initiate a foreclosure to recover the money it lent to you the moment your house is sold at a foreclosure sale.