Can 2nd mortgage company sue after foreclosure on first?

Guest 0.10 Dollars($)

I had a first and a second mortage on my house which went into forclosure. the first got their money. The second is coming after me for theirs. Can they sue me? Can they put a lein on other property that I own? I got a written letter from an attorney that the 2nd mortgage company retained stating that the amount due must be paid in 30 days or there would be further legal action. What can they do to me??

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

The second mortgage holder can persue foreclosure on the property that has the lien on it. They cannot come after you or put a lien on another property unless they obtain a judgement for this amount. This would not likely arise until after the house is sold at auction and there is a defiency (shortage) from the sale. Most people file bankruptcy at that point to avoid the judgement from the shortage. Hope this helps but I would consult with an attorney about how to proceed depending on if you would like to keep the home or not.

If you want to keep this home, I would call the 2nd mortgage holder and ask for a loan modification. Many lenders are bending over backwards to come to agreeable terms that are benefical to both since they would rather not have proceed with the foreclosure if at all possible,. Most lenders would rather give you a lower interest rate, payment, etc that will allow you to get back on track and eventually pay them back.

Guest 0.10 Dollars($)

We have been out of our house for 3 years. We had a 2nd. Mortgage on our Foreclosed house. The 1st. Mortgage took the amount off of our credit and stated the foreclosure, the 2nd. still has the amount due with no foreclosure. I received papers last night that the 2nd. mortgage co. is suing my husband and I. Can they do that since we have not been in the house for 3 years and it was already sold at the auction?

smithsussane · Posted: Wed Dec 10, 2008 9:55 pm Post subject:

Hi Janice Stone!

Welcome to forums!

Didn't the second mortgage lender know that your property was foreclosed upon and was sold at the auction? I think they are suing you as you have not paid the amount that was due on the 2nd mortgage. Yes, they will have the right to sue you. You need to speak to them and check out if they have any plans through which you will be able to pay off the debts.

Feel free to ask if you have further queries.

Sussane

Guest 0.10 Dollars($)

I have two loans with the same bank and am in foreclosure in California. In California there is a one action rule, they have to do a judicial of non judicial foreclosure. If they do a non judicial foreclosure can the second sue me later of the second?

jameshogg · Posted: Tue Jan 06, 2009 1:34 am Post subject:

Hi Jason b,

As far as I know, yes, in case of a non-judicial foreclosure, the second lender will have the right to ask you to pay the deficient amount. He may even sue you. There are chances that if you cannot pay the loan, he may even place liens on your other properties.

Thanks

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