Posted: Tue Dec 30, 2008 5:24 pm Post subject: What happens to the 2nd mortgage when the 1st is foreclosed?
My house was foreclosed and sold in July (California). I had 2nd mortgage in the amount of $100K. Do I still keep paying for the 2nd? or is that included on the foreclosure?
If the foreclose sale satisfies both the mortgages, then you will not have pay the second mortgage dues. But if the second mortgage is not satisfied by the foreclosure, the second mortgage lender will ask you pay off the dues. If you do not pay the dues, there are chances that the second mortgage lender may place liens on your other properties.
You have mentioned that your property was foreclosed in July. So are you still paying the second mortgage dues?
I am still paying on the 2nd mortgage...The house was bought back by BNC mortgage at a lower price. I was told by a Title officer that If the house has been foreclosed, all loans are wiped out. We don't have any other property other than the house that we lost.
There's more to the story that I had posted. The house was actually my parent's house and my husband's name was added several times on the title. The 1st loan was foreclosed under my step father's name. We took the 2nd loan of $100K to supposedly save the house (at least that was the impression my step father told us). But it was already too late to save the house...I don't even know how the bank approved the loan; when I checked the trust deed, the house was set to be auctioned in February - about 2-3 days after we were approved for the 2nd loan. I tried calling the bank and all they told me was we still need to pay for the loan. I don't know if we still should be paying on it. This title officer I spoke with, has been working as title officer for 30+ years. Also, the collateral for the 2nd loan is the house...we don't own the house anymore nor do we live in it. I know that our credit score is already damaged. But I cannot afford to pay for the loan anymore. Is there anyone that knows the rules or regulations in california regarding mortgage loans that have been foreclosed? If we stop paying the 2nd loan, will the bank come after us? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
You have said that you took the 2nd loan to pay off the first mortgage. So didn't you pay off the first mortgage with that amount? If you paid off the first mortgage, then the lender should not have foreclosed the property.
Though the property has been foreclosed and sold off, still you will have to pay the second loan. If you stop paying, the lender may place liens on your other properties or may charge off your loan to a collection agency. _________________ Procrastination is the enemy of your financial sucess
Posted: Tue Jan 13, 2009 1:12 pm Post subject: second loan in collection
my mortgage and i are working in to the principal loan,but the second one is in collection,i dont know why,since i made an arrenglememt with the bank since the begigning i just dont know how to proced,should i call the collection agency or to a lawer?
As the second lender has charged off your loan to a collection agency, you can call the collection agency and check out what you need to do. Though the second mortgage has been charged off, you still need to pay it off. Otherwise it will reflect in your credit report. So try and pay them off. _________________ Procrastination is the enemy of your financial sucess
etheleenteves
