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if i pay my fha loan can the second loan foreclose on me

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karmar42 Joined: 16 Feb 2011 Posts: 1 1.31 Dollars($)	Posted: Wed Feb 16, 2011 9:36 am    Post subject: if i pay my fha loan can the second loan foreclose on me Like 0 Dislike 0 I have 2 loans first is fha second home equity i am behind two months each if i catch up on my fha loan can the home equity lender foreclose on me
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Wed Feb 16, 2011 10:13 am    Post subject: Like 0 Dislike 0 Any lienholder can begin a foreclosure action. That being said, however, it is highly unlikely that a secondary lender would begin an action because in order for them to get paid off, they'd have to pay off the first (FHA) mortgage first (hence the appellations "first" and "second" mortgages). If your home is valued sufficiently high to cover all liens on the property, then it might be worth the trouble for the home equity lender to take this approach. Otherwise, they'll sit back and wait, hoping that you'll find the funds to pay them eventually. Don't take their inaction, if that's the case, as an excuse to ignore them, though. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044
karmar42@yahoo.com Guest	Posted: Wed Feb 16, 2011 12:30 pm    Post subject: 1st and 2nd mortgage Like 0 Dislike 0 Hi George.. Thank-you for the information... I will give you more specifics and see what your thoughts are... 1st mortgage is an FHA via BOA with 195,000 left on it and the 2nd one is a a home equity through GMAC and has a about 135,000 owed to them. The house is worth roughly 250,000... In your opinion what do you think they will or can do... Thanks Again Karen
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Wed Feb 16, 2011 11:41 pm    Post subject: Like 0 Dislike 0 Hi karmar! Welcome to forums! George has already mentioned in his previous post as to what the lender can do. Though the second lender has the rights to foreclose the property in case of non-payment of the dues, they may not do so as they will have to pay off the first mortgage lender in full before satisfying their own dues. However, there are high chances that the second mortgage lender can charge off the account and assign it to a collection agency. Feel free to ask if you've further queries. Sussane
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Thu Feb 17, 2011 12:40 pm    Post subject: Like 0 Dislike 0 Yes, despite the lack of value in the home, your secondary lender still wants its money back. To begin a foreclosure action wouldn't be beneficial since they're in second position. But the charge off scenario is viable for them - from an accounting standpoint, they are better off having charged off a loan than carrying it as a delinquent account. And, of course, if they sell the debt to a collector, they can replace at least a portion of the charge off with the cash paid by the collector. Unless you simply stop paying them, of course, they will simply sit back and take your payments - which, of course, would reduce your debt load as you go. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044

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