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 David
Joined: 13 Mar 2008
Posts: 2
2.95 Dollars($)
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 Posted: Fri Mar 14, 2008 12:12 am Post subject: 2nd Foreclosed & took property back....What now? |
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My property was foreclosed on by the 2nd Mortgage Holder (small company) and they took my property with the exisiting 1st Mortgage. Can they continue to pay my 1st Mortgage and hang onto my property?
Will the 1st Mortgage holder allow them to keep my mortgage in place if they're paying it on time? Will it still report on my credit report? When is the loan called due, if ever?
Thank you for your time in reading this.
David |
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jameshogg
Joined: 20 Dec 2005
Posts: 1812
Location: nevada
268.37 Dollars($)
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| Posted: Fri Mar 14, 2008 12:35 am Post subject: RE: second lender forecloses - what next? |
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Hi David,
Welcome to forums.
Does your first lender know that the second has foreclosed? The first lender should be paid off first. If your home appraised value is higher than the combined value of the two loans, then it is useful for one lender to control 2 loans. So, if the second lender has foreclosed, the first will try to buy out the second’s share of interest in property. Alternatively, the second lender can also negotiate to buy the first mortgage.
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David
Joined: 13 Mar 2008
Posts: 2
2.95 Dollars($)
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| Posted: Fri Mar 14, 2008 12:24 pm Post subject: Reply |
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The 2nd Mortgage has foreclosed and I'm unaware if the 1st Mortgage is aware of it. The 2nd Mortgage holder continues to pay my 1st on time. The property has about 10% equity left in it. Can the 2nd Mortgage Holder, now owner of the property (REO), take advantage of my 5.875% 30 yr. Fixed 1st Trust Deed? Are they not required to pay it off? Can they hang onto it as if it were their own? Will the 1st allow them to w/o calling the loan or requiring them to assume it?
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larry
Joined: 27 Jun 2007
Posts: 3328
473.51 Dollars($)
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| Posted: Fri Mar 14, 2008 2:48 pm Post subject: |
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Hi David,
Welcome back.
How can the second lender foreclose the mortgage without even informing the first lender? As far as I know if a house is foreclosed then the borrower will have to pay the first mortgage lender first.
I think as the house is already foreclosed your credit have faced a huge negative effect. So why are you still be in the mortgage? I think ask the second mortgage lender to sell the property and then pay off both the lenders. If there is any due balance you will need to pay off but as you have said "The property has about 10% equity left in it" you may need not to pay much to them.
You can also contact with an attorney in this regard.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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