What happens to 2nd in Short Sale

[Bob Salas]

I live in Oregon and have been trying to get BOA to modify my loan for 2 years. We alos have a 2nd with HFC.

9 months ago BOA put us on a 3 month trial payment plan with payments that are higher than our mortgage was!? Of course, they never return my calls and when they do they say that the paper work has been approved and it should be arriving any day now.

My feeling is to stop making payments on both the 1st and 2nd.

The first is $113k and the 2nd is $30k. The house is probably worth about $130k on a real good day - needs about $10k in repairs. If I could get both modified I'w love to stay. But neither seems willing to move on it.

If I stop making payments, I know I will take a hit on my credit, but I cannot help that. I gotta eat.

My thinking is that we not make payments for as long as we can hold out 6-9 months some say. Then when they begin foreclosure, ask for a short sale. This buys another 3 months. I believe that if I can do this for 12 months - not make payments - I can pay off almost all of my bills - cars, medical, etc - and be actuclly in a better financial situation than before.

My concern is if we short sale for, say $110k, that still leaves the 2nd. Will I still be on the hook for that? Someone says you can make the second part of the short sale so that the second will just disappear with the sort sale and the first.

Am I wrong?