can the 2nd foreclose

troybryant · Joined: 28 Nov 2008 Posts: 1 1.33 Dollars($)

We have a first of 300,000. A second of 70,000 { a line of credit} The value of the house has gone to 1/2, 200,000.
We have kept up the first, of 1,000 mo, but unable to pay the line of credit. My q. is, can the 2nd foreclose?

banker0679 · Posted: Sat Nov 29, 2008 1:02 pm Post subject:

Yes they can foreclose on the house....but it will not be in their best interest to do so.
The first lender will get the money before the 2nd lender see anything.

carlpruitt · Posted: Sat Nov 29, 2008 10:47 pm Post subject:

They can definitely foreclose, but would have to pay off your first mortgage in the process.

The second mortgage holder can still sue you, but it sounds like that is not your biggest worry right now. Good luck fighting your way through it. Many people are in the same situation these days.

Guest

We have a heloc line of credit on our morgage, we have kept up the 1st, but the line of credit hasnt been paid in 7 or 8 mo. the 2nd is 70,000
and the house is prob worth 250,000. They sent a letter to start forclosure.
What can we do?

adonis · Posted: Thu Dec 04, 2008 12:27 am Post subject:

Welcome barb,

You will have to contact the lender immediately and see what options you can get. You can try a loan modification option or forbearance. In a loan modification, the loss mitigation department of the lender will give you an alternative payment plan to pay off the debts.

In forbearance, the lender will suspend or reduce the payments for few months and also give you a repayment plan. There are various other ways to avoid foreclosure. To know more about them, check out the link:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html

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