Paying on Missed Payments: Second Mortgage vs. First Mortgage

Should I Pay My Second Mortgage if I’m Not Paying My First Mortgage?

If you’re not paying your first mortgage or have missed payments, there really is no logic to paying a second mortgage.  There is also no reason to pay on credit card debt if it is overwhelming your budget.  But all of these decisions require solid, experienced legal advice from a specialized Connecticut home-saving attorney.

The critical step when you’ve missed a mortgage payment is to save the money and contact experienced legal counsel for free advice and a solid solution.

There really is no advantage to paying on a second mortgage if you aren’t paying on the first mortgage. But you always need to be sure that you are saving the money you don’t pay to the second mortgage or the first mortgage. Missing payments and not saving money is the biggest mistake made by homeowners in trouble.  While it’s never good to miss any payments, paying on a second mortgage while you don’t pay the first mortgage doesn’t really accomplish anything useful toward saving your home.

Many people make payments on second mortgages while not paying first mortgages because they really want to pay, they don’t want to be behind on any bills, and therefore, pay the second mortgage despite the fact that it uses precious resources and won’t help save their home or get a modification. Although long-term solutions require relief on all debt fronts, mortgage companies often ignore second mortgages or other debt entirely when they review applications for first mortgage modifications.

Saving money by defaulting on a second mortgage or credit card obligations is generally the correct choice and done properly, it is the sensible decision for people seeking to save their homes and/or obtain a mortgage modification. As with many other financial matters, any attempts to save a home or missed payment should involve the assistance and advice of an experienced professional and a well-thought-out future plan for full financial recovery.

Many Second Mortgages are Removable

While not all second mortgages are removable, any second mortgage that doesn’t have property equity to support the mortgage is subject to removal in Chapter 13 bankruptcy.  If your first mortgage exceeds the value of your home, all junior encumbrances are subject to complete removal or lien stripping under Chapter 13 or Chapter 7.  Lien stripping is a powerful tool for removing all liens and getting back to the proper circumstance of a primary mortgage with no other encumbrances on your home.

Missed Mortgage Payments are Legally Solveable

Any time you stop paying on a mortgage, you need to get a prompt consultation with a lawyer who knows your legal options, the proper procedures and the appropriate steps to properly fix your home financial concerns.

Making Payments on Other Debt While Not Paying My Mortgage

Given the importance of your home and the non-importance of many other debt payments, all types of debt payments have different levels of priority and choosing which to pay and not pay is a critical decision often made incorrectly by frightened Connecticut homeowners trying to pay everything.  Nonetheless, this bill prioritization is an essential first step in any approach to solving your personal financial problems.

Without good guidance, homeowners in trouble often pay on low priority obligations just to avoid further battling with other creditors or phone calls from collectors.  This isn’t a good choice or a concrete plan, but it is a very common mistake made without outside guidance from a legal professional with experience in correcting mortgage problems.

As experienced legal counsel with decades of success in saving Connecticut homes, here’s our payment priority list:

  1. Food
  2. Utilities
  3. Car Insurance
  4. Car Payments
  5. Income Taxes
  6. Rent
  7. First Mortgage Payments
  8. Second Mortgage Payments
  9. House Taxes, Auto Taxes
  10. Credit Cards
  11. Personal Loans
  12. Medical Bills

Any solid financial reorganization involves a comprehensive and customized plan created for your circumstances by an experienced legal professional that prioritizes money available, time allowed for a solution, and the prioritization of limited funds to the most important debts in accordance with set goals.  Plan, prioritize and execute.

Get A Free Consultation to Prioritize your Payments

Get a free consultation and analysis – This is new to you and everyone in your circumstance, but to us it’s clear and predictable.  We know what the beginning, the middle and the successful end of the process looks like to all homeowners who miss mortgage payments on first mortgages, second mortgages or other obligations.

At the Law Offices of Neil Crane, we have been helping Connecticut families understand their options for saving their homes and getting back on track to financial recovery since 1983.  Call us at 203-230-2233 or complete our online contact form to explore your options with our team of CT attorneys. Our offices are in Hamden, Connecticut; New Haven, Connecticut; Waterbury, Connecticut; Rocky Hill, Connecticut; Ridgefield, Connecticut; and Bridgeport, Connecticut.