What happens if pay 1st mortgage but not 2nd mortgage?

What is the name of your state? PA
My husband and I have run into financial dificulty. I was layed-off a little over a year ago. I can not find a position making same money. My share of income is cut more than in half. I tried for 1 1/2 years to get decent paying position, unemployment and our savings is depleted. We can make the 1st mortgage payment but can not pay the 2nd mortgage. What will happen? Can the 2nd mortgage forclose if I am paying 1st mortgage? Can they force us to sell our home which isn't worth (according to local realator) what we paid for it on the 1st mortgage let alone the 2nd mortgage. Are we better off paying 2nd mortgage or the car payments and credit card bills. I already contracted a non-profit organization to pay off credit cards at $300.00 a month instead of $523.00 a month. 2nd mortgage ofcourse says pay them not credit cards and car payments. If I don't make car payments and they take cars we have no way to get to work. Maybe backruptcy is our only option now? Would this get rid of 2nd mortgage & credit card & car payments but let us keep house and 1st mortgage payment?

[HomeGuru]

[quote]Originally posted by angelcloud
[b]What is the name of your state? PA
My husband and I have run into financial dificulty. I was layed-off a little over a year ago. I can not find a position making same money. My share of income is cut more than in half. I tried for 1 1/2 years to get decent paying position, unemployment and our savings is depleted. We can make the 1st mortgage payment but can not pay the 2nd mortgage. What will happen? Can the 2nd mortgage forclose if I am paying 1st mortgage?

**A: the second mortgage lender has exactly the same rights and remedies as the first mortgage lender, thus they can foreclose.
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Can they force us to sell our home which isn't worth (according to local realator) what we paid for it on the 1st mortgage let alone the 2nd mortgage.

**A: no, but they can file foreclosure and obtain a court order appointing a Trustee to sell your home at a foreclosure sale.
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Are we better off paying 2nd mortgage or the car payments and credit card bills. I already contracted a non-profit organization to pay off credit cards at $300.00 a month instead of $523.00 a month. 2nd mortgage ofcourse says pay them not credit cards and car payments. If I don't make car payments and they take cars we have no way to get to work. Maybe backruptcy is our only option now? Would this get rid of 2nd mortgage & credit card & car payments but let us keep house and 1st mortgage payment?

**A: only a BK attorney would be able to advise you properly after a complete review of your financial situation.