Short sale and 2nd mortgage

[flaneedshelp]

What is the name of your state? Florida

My ex-girl friend and I took out a 2nd mortgage(20K) on her home. She consumed most of the money and has been paying the payments. Now she does not work, her mom is sending in a hardship letter to the bank and is short selling her home. What should I do to best protect my self. Thank you in advance. Tom

[FlyingRon]

I'm confused. What fiduciary role do you play in this. Are you an owner of this home or listed on one of the loans?

[flaneedshelp]

She is the owner of the home and we both signed for the second mortgage. I hope this help explane my sitiuation a little better. Her Mom feels sending in a hardship letter to the bank on her daugters behalf might help in getting the 2nd mortgage released so they will be able to short sell the home.

Thanks in advance

Tom

[FlyingRon]

You could try, but I don't know why the second would walk away from $20K. They're in no better shape then than if it goes to foreclosure.

Further, your credit is going to be screwed by the write-off. It's also going to be taxable income to you.

The best way to protect yourself is to make sure the payments get made, even if you make them yourself. That's what you obligated yourself to do when you signed the mortgage.

[nextwife]

Why is choosing to not work a "hardship" for this woman? I'd find it hard to pay my mortgage if I "wasn't working" right now. Why do they think the bank loan is only due if she's choosing to work? A "hardship" would be like the borrower I'm working with who has esophogeal cancer and had a huge amount of his interior removed. Ex sitting on her duff is not a hardship and the bank won't care. WE won't take a write off in the scenario you described.

And BOTH borrowers are equally liable.

[LindaP777]

Originally Posted by nextwife

Why is choosing to not work a "hardship" for this woman? I'd find it hard to pay my mortgage if I "wasn't working" right now.

LOL! Who knows how to get coffee out of a keyboard??? I just spewed! This is so true, NW! Some people are amazing . . . but not in a good way!

(I am still amazed that the government does not require Section 8 recipients to work if they are able-bodied! It has nothing to do with this thread, I just thought I'd throw in something else that truly amazes me!)