Home sold due to foreclosure - Am I liable for second loan?

Niicss · Posted: Thu Aug 28, 2008 6:23 am Post subject:

Welcome Carol.

The second mortgage lender can foreclose but after the sell the first mortgage company should be paid first and then the second mortgage lender will get his money. By the way, the person who buys the property in the auction will not be responsible to pay your unpaid debt. It is your debt and you are responsible to pay it off.

Caron · Posted: Thu Aug 28, 2008 6:40 am Post subject: RE: second mortgage foreclosure

Hi carol,

welcome to our forums.

The person buying the property at the foreclosure auction does not become responsible for the first loan. Since the second lender wants to foreclose, either he or the borrower has to pay off the first loan. The second loan is subordinate to that of the first. So, the second lender and the borrower needs to talk to the first lender and inform them about the foreclosure. In most cases, the second lender has to satisfy the first and then recover his money from whatever is left behind.

Good luck

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I am finding it difficult to make my mortgage payments and would like to know what are the financial and legal implications of a foreclosure

sara · Posted: Mon Sep 08, 2008 5:18 am Post subject:

Hi journvic,

Foreclosure isn't the way out when you can't pay for the mortgage. I mean there are various other ways to choose from if you can't repay. You can opt for an alternative repayment plan or a loan modification. Or you may even refinance to a lower rate so that you'll save in interest. Just check out the 17 ways to avoid foreclosure .

Take care

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What is the liability to the borrower if they foreclose on their home. First time buyer, unable to meet mortgage payments and unable to get a fair price when selling. Can the lender attach paychecks and bank accounts?

Caron · Posted: Fri Oct 10, 2008 5:53 am Post subject:

Well, the lender can attach paychecks and bank accounts if you fail to pay off the deficiency payment, if any. However, if the lender hasn't declared foreclosure, I would suggest that you talk to him regarding any alternative options with which you can pay off the mortgage. You will find some of the alternative options at http://www.mortgagefit.com/foreclosure/17ways-avoid.html .

Good luck

Guest 0.10 Dollars($)

MY PROPERTYS VALUE IS $650000.00 IN THIS MARKET. i OWE $725,000.00 ON THE 1ST AND $140000,00 ON THE 2ND. I am in modification on the 1st and 4 months behind on the payment. My 2nd is 2 months behind and the 2nd lien holder is going to foreclose on the property by the end of the month if i dont pay the past due amount. Can the 2nd foreclose? with the property being upside down and if the 2nd forecolses and can not sell the propoerty to satify the first what happens next? once the sale goes through and there is not an offer to satisfy the loans what is the position of the 2nd ? and what is the next step for them?
last question, where does this put me whan all this takes place? Confused

Niicss · Posted: Mon Dec 15, 2008 1:55 am Post subject:

Hi JOHN

Did you speak to your second lender about a loan modification or forbearance? I think you should first try to negotiate with the 2nd lender and see if he agrees to any of the options.

The 2nd lender can foreclose the property. But as far as I know, if they foreclose, they will have to pay off the dues of the 1st lender as well. If the lender forecloses the property your credit will be badly hurt. It will be lowered by 250 points.

Thanks.

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