attaching lein from foreclosure on new owner finance home

pricephyllis · Joined: 18 Apr 2008 Posts: 2 2.77 Dollars($)

We are being foreclosed on in our current home, and would like to know if our secondary lender Citi Financial can put a lien on a new owner financed home. We had until now perfect payement history on a 30 year conventional loan @ 6.33% through a bank and took out a 2nd mortgage through Citi Financial @ 13.75% due to severe medical debt after job and loss of medical insurance I went through cancer tx. and my husband having a stroke we had no choice. We took a 30 year morgage and paid 150.00 extra towards principal every month and turned a 30 yr loan into 12 years then disaster struck. Our question is we have a person who is willing to owner finance @ 8% but we are worried if Citi finacial will place a lien on our new home. The home being foreclosed is going to be short saled for less than owed leaving the villians Citi Fi. What can they do we are concerned and do not want our new home have a lien or attachment put on it. 1st mortgage owed is 67K and 2nd morg. Cit is 38K. Any advice or information would be greatly appreciated.
Hoping for a 2nd chance.

helping_user · Posted: Fri Apr 18, 2008 9:25 pm Post subject: RE:

Welcome pricephyllis.

There is a possibility of Citi Financial placing lien on your new home if they foreclose. But the point is, if you are doing a short sale, you have to pay the primary lender first and then the secondary. However, it depends as to whether the second lender is willing to go for a lien or they'll ask for the deficiency judgment.

Thanks.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi pricephyllis.

Welcome to the forum.

As the sale price is lesser than what you owe, the lender can ask you a deficiency judgment or even can place a lien on your new property. So talk to you lenders to see if they can forgive your due debt. If not, then at least try to pay it on a monthly basis. That will improve your credit score.

Feel free to ask if you have any further questions.

Best of luck,
Larry

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