2nd Mortgage Is Passed The Due Date....

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Posted by SuziQ on February 11, 2002 at 22:34:08:

I purchased a home in 1999, and the conditions of the 2nd was that it was to be cashed out by 6/2001. But, when 6/2001 rolled around my credit scores were slightly low to qualify for even a bad credit loan (my high score being 519).

I spoke to someone today that said he could possibly lend at 12%, which would pay off my debts and consolidate my 1st and 2nd. What bothers me is that this person is a known land developer, my property is in a prime location, he knows the information about my seller (who is anxiously waiting to be cashed out), and I'm afraid that if I decline the 12% offer and, instead, opt to clean my credit to get a better rate, that this developer will step in, contact the seller to buy her note, step up to pay off my first (which is in a current status), and start collection proceedings on the second, even though I've maintained payments.

I've been paying my seller double payments every month in an effort to pacify her until I can raise my credit score to qualify for a better rate than 12%. The terms of my 2nd doesn't call for foreclosure if I went past the note's due date, but does say that I will need to pay 18% until paid in full. Am I in danger of losing my home? Suggestions and feedback are very appreciated.

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