Can my second lender foreclose my home?
Can my second lender foreclose my home?
I had to pay off my 2nd mortgage in September, 2010. The amount was around $36,000. As I did not had the money, I had to default on it. My second mortgage lender said that they will foreclose the property. My first loan amount is nearly $570,000. The fair value of my house is 550,000. Can my second lender foreclose my home?
4 Answers
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If the second mortgage lender does not get back his dues on time, then he has the right to foreclose the property. However, in such a case, the second mortgage lender will have to pay off the dues of the first mortgage lender before he recovers his own dues.
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The second lender has to pay off the dues of the first mortgage lender as you owe them the money even before the second mortgage lender. Do you have no way of repaying your second mortgage loan?
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I agree with Jerry that the second mortgage lender can foreclose the property. But as he has to pay off the first mortgage, in most cases, there is a high chance that the lender may charge off the dues.