What is the name of your state? South Carolina
I have a short sale with CitiMortgage (primary) and an outstanding 2nd mortgage of $95K with Chase - which I am not going to cover the balance for. Chase gave me 3 options in order to cooperate with the Short sale:
1) Pay a cash settlement of 10% ($9K)
2) Agree to a payment arrangement of 20% ($18K)
3) Tell them to "charge-off" the balance and proceed with the short sale.
My question is if I'm already 6 months no-payments on the loan and my credit is destroyed why bother throwing more $$ at the problem and settling what is owed (even if it's only 10% of the loan). Should I just take the "charge-off" hit and save my money for better days?
Also, is there any risk of legal action given the state of foreclosures right now?