2nd Lien Strip or Negotiation

[HHM]

Or - you stop paying your mortgage (your 1st mtg is already under-water), let it foreclose, and then leave. Looking at the way things are - that might take 8-10 months, if not more. So, JDB gets nothing and you live for free for almost a year.

Will that work ?

Yes, that works. It is quite common for people to continue to live in their home throughout the foreclosure process and live rent/mortgage free.

[Doghouse]

Or - you stop paying your mortgage (your 1st mtg is already under-water), let it foreclose, and then leave. Looking at the way things are - that might take 8-10 months, if not more. So, JDB gets nothing and you live for free for almost a year.

Will that work ?

Yes. I have not paid any mortgage since I last paid in Sept '08. So Oct '08 till today (4+ months) I have not paid any mortgage (1st or 2nd) and am yet to receive a Notice of Default. I plan on filing for BK in the 1st week in March. For the entire process to play through, I expect to live rent free for 10 months to 1 year or longer. I am here in Northern California and my house is about 130K to 140K negative equity.