Liens on 2nd Mortgage-Do they Incur Interest?

[HOMEBODY]

I am planning to file within the next 90 days. I have no other recourse, I've tried modifying my loans with the mortgage company and it has taken a year and nothing yet. I had perfect credit before I tried modifying but now I understand that since I am on a trial modification they are reporting me late and they have really messed up with the payment schedule I had prior to their trial modification. I have no other option since my credit is already messed up from the 2 mortgages I have.

Anyway, I am ok on my own house payment and these are the following statistics on my situation.

I make about $8,000 in self employment.

Home Loan $746,000.00, monthly payment $2071.00 (1% interest)
Equity line on this loan is $83,000.00 (trying to modify)
House is worth about $600,000.00.

2nd Home -renting for $2200.00
1st Mortgage $180,000.00
Equity Line $248,000.00
House is worth about $300,000.00

3rd Home - currently vacant, hope to rent at $990.00
1st Mort. $160,000.00
2nd 20,000.00
House is worth about $130,000.00


I now have about $60,000 in credit card payments (they were used mainly to keep these houses when they were vacant.

I cannot file for Chapter 13 because I owe too much.

If I file for Chapter 7 and include 2nd lines of credit..I know the equity lines of credit will become unsecure and they will file a lien. If I cannot negotiate them and they are liens on my property..if I dont make payments, are they going to add interests on these loan? I dont mind paying when I sell the properties and the houses are worth more. I just cant afford to pay now and I will try and negotiate if I can.

[justbroke]

If I file for Chapter 7 and include 2nd lines of credit.. I know the equity lines of credit will become unsecure and they will file a lien.

That doesnt' make any sense. An equity line of credit (aka a HELOC), is secured by definition. The fact that you file doesn't make it unsecured. The liens are already in place.

If I cannot negotiate them and they are liens on my property..if I dont make payments, are they going to add interests on these loan? I dont mind paying when I sell the properties and the houses are worth more. I just cant afford to pay now and I will try and negotiate if I can.

Interest will accrue on the loan until you pay it off. Even if they foreclose and a deficiency is created, you'll be paying interest on the deficiency.

If you actually have $40K in equity on the 2nd... they might just try to foreclose.

What are you trying to do? If you're filing Chapter 7, you would be getting rid of any 2nd and 3rd homes. As a matter of fact, I wouldn't even keep the primary residence (1st home).