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Bird, Second mortgages are always at a higher rate because they have much greater risk. With all the foreclosures and short sales in the market today, second lenders are getting little or nothing out of any settlement. They offset the risk by increasing the rate. Telling you to default is dangerous advice. Only consider something like that if you have discussed it with your attorney and have review the consequences that come with that. Since you indicate you are having a financial hardship, you may be able to do a loan modification with one or both lenders directly. Contact them through the customer service numbers on your statements and ask what options they can make available to you.
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For Sale: $224,999
For Sale: $375,000
For Sale: $599,000