Answer: -Anything is possible if the mortgage company is motivated enough.

Answer: -Nomi, the California redemption period is approximately 3 months and begins after you receive the notice of default.  Typically you won’t receive a notice of default until you are at least 3 months behind on your mortgage, especially now, banks are slower issuing the notices of default because they don’t need any more inventory.  So you’re about 6 to 8 months out from foreclosure, if it goes that far, so you do have several options as a homeowner.  Unfortunately Obama’s HAMP program hasn’t turned out the way we had all hoped, however there are alternatives.  Assuming you want to stay in your home, one option is a loan modification. This is something you can do yourself or you can hire an attorney to do it for you…just be careful in choosing the right attorney that really does care about your situation and will guarantee their work. Another option is to sell your home, if it has equity, and move into something smaller or less expensive until things pick up again. If your home does not have equity and a loan modification doesn’t work, you could try to do a short sale where a buyer offers the bank less than what is owed on the property. Whatever you do, don’t give up.

Answer: –  I would keep trying to work with your bank on the loan modification.  There are several attorney’s out there that “GUARANTEE” there work when modifying loans so you may want to check into that as well.  It’s hard to believe sometimes, but they really do want you to stay, the challenge has always been jumping through all their hoops which an attorney can assist you with.  Also you have a better chance since they know certain things to say that will increase your chances of a successful loan modification.

If a loan modification still doesn’t work, then you could try to do a short sale.  Unfortunately with a short sale you would have to sell your home, but if you can’t make the mortgage, then you’re going to move anyway so might as well be a short sale then foreclosure on your credit.  Regardless if you do a short sale or foreclosure, the bank still has the right to come after you for the deficient amount, but very rarely does this ever happen in California because of the laws there.  And if you have an seasoned agent or investor working with you on the short sale, they can actually eliminate the possibility of a deficiency judgment altogether.  So really all you have to be concerned with is a 1099 from the bank.  They will write off the loan as a loss and 1099 you for the amount they lost.  Whatever you do, don’t ever give up.

Answer: –  Yes, the 2nd can and most likely will foreclosure on your home, even if it’s the same lender because you are not meeting your obligation to them.  It’s just a matter of time. You might try to do a Loan Modification especially if your 1st and 2nd mortgages are with the same lender

Answer: -Right now there are lots of Loan Modifications going on. This is where the lender can modify the original loan terms to something that is more doable for you. You may want to check it out.

Answer: – I guess it all depends on what you are trying to do. Are you trying to work out a loan modification or forbearance agreement? Why are they asking for tax info? Depending on the lender and how far you are behind, they may not accept your payment to catch up. I would call your lender to find out why they need your taxes.