Question by Carol B: How can I get a bank to consolidate two mortgages?
We have two mortgages on our house. the holder of the first one bought out the second mortgage company. Why won’t they refinance the mortgages into one. We cannot make both mortgages anymore due to a change in employment, loss of wages. HSBC and HFC are the companys. So we’re paying just the first one. Can we be foreclosed on?
The balance of the two morgages is lower than the value of the home. Make sense?
Answer by Obviousman
If you don’t pay, you definitely can and will be foreclosed. I suggest you contact your lender asap to try to get them consolidated… or contact a lawyer or someone in your area who does loan mods.
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You will have to refinance them – either with your current lender or a difference lender. If you cease to pay either, the lender CAN foreclose.
Careful you could be getting into a PMI situation. If you can not afford the payments and the job is not going to be replaced soon get the house on the market tomorrow and try and sell it.
Yes you can be foreclosed on!
Sure you can be foreclosed upon. And you’re ruining your credit.
Look YOU went to the banks and asked them to loan you money. You got the money, bought the home and promised to repay them. Whether bank ownership has changed is irrelevant, as is your decreasing income, normally. Obama has created some programs to help home owners stay in their homes. They usually do NOT mean lenders HAVE to do anything, they provide incentives for them to do so, and some lenders have been very slow to act. But you want they to do you a favor, so you have to ask and persist and call again and again. You can ask for loan modification, lowering the interest rate on one or both loans. This generally does not mean forgiveness of debt or lowering what you owe, just lowering interest rate.
Consolidating two loans into one is MUCH more complicated and tricky and there’s no incentive for lender to do it, EXCEPT as refi, which costs money, and requires you to have equity in home and to pay closing costs.
While your first mortgage may be without recourse, your second is not, and you can get 1099C which complicates your income tax situation.