The aforementioned entities do not guarantee the accuracy of the following statements. Who to pay when you can't pay everyone Mory Brenner, Esq. Who gets money when everyone can't be paid must be a decision you make based on your own situation, not who calls you the most or who you owe what to. In most cases the creditor receiving top priority will be the first mortgage holder on your home. This obligation likely represents a debtor's largest payment.
Human tendency evidences payment to smaller creditors when money gets tight.
Often credit cards and second mortgages may be paid in full once first mortgage payments cease. This results in a short sighted solution. Soon your credit becomes blemished anyway and foreclosure on your home follows. Negotiations with first mortgage holders can be more difficult than with other creditors. Either one may be a valid answers depending on personal circumstances.