Stop Paying 2nd Mortgage?

let's take a look / more at the link

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By Kenneth R. Harney

Saturday, September 25, 2010

Are you delinquent on your first mortgage but still making monthly payments on your home-equity credit line or second mortgage?

If so, a finance and real estate professor from DePaul University has some controversial advice for you: Stop paying on your second immediately.

Rebel Cole believes you are simply throwing good money after bad. If you are seriously delinquent on the first mortgage, you're likely headed for foreclosure unless both of your lenders agree on a modification or principal-reduction plan. But because you continue to make payments on the second, the bank that holds that revenue-producing note might have minimal motivation to participate in a workout, he thinks. Cole estimates that between 1 million and 3 million homeowners are in this position nationwide -- making it a big problem.

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/24/AR2010092400126.html

It's your credit score dummy

le't take a look

Huge Gap in Mortgage Availability: 1/3 of Americans Highly Unlikely to Qualify for a Mortgage Today, While Less Than Half Qualify for the Best Rates

.........................- Nearly one-third of Americans are unlikely to qualify for a mortgage because their credit scores are too low, making homeownership out of reach for many. This is according to an analysis of more than 25,000 loan quotes and purchase requests onZillow Mortgage Marketplace during the first half of September.................

http://www.prnewswire.com/news-releases/huge-gap-in-mortgage-availability-13-of-americans-highly-unlikely-to-qualify-for-a-mortgage-today-while-less-than-half-qualify-for-the-best-rates-103849853.html

Debtors Fight Back

Debtors in court -- suing collectors

Using legal tactics pioneered by a Minneapolis attorney, debtors are striking back.

By CHRIS SERRES, Star Tribune

Pete Barry, a Minneapolis attorney, has flown all over the country conducting boot camps for lawyers, teaching them how to sue debt collectors under the federal Fair Debt Collection Practices Act (FDCPA).

http://www.startribune.com/investigators/99676349.html?elr=KArks:DCiUHc3E7_V_nDaycUiacyKUHDYaGEP7eyckcUs