Does the new mortgage bill cover me whom is holding a 2nd mortgage for the buyer?

kdhein1 · Joined: 11 Sep 2008 Posts: 2 2.02 Dollars($)

Does the new mortgage bill cover me whom is holding a 2nd mortgage for the buyer?...We have carried a 2nd mortgage for the buyer and we had to foreclose on the buyer. Unfortunately the buyer defaulted on the 1st mortgage also. as the holder og the 2nd mortgage do we have any rights over the mortgage company that holds the 1st. The reason for this is because we recently got an offer on the house we foreclosed on but the 1st mortgage holder is holding our feet to the fire saying we have to pay accumulated interest the buyers had, back taxes the buyers never paid and all of the realtor fees. Is this how it works or is there something we can do to make them help somewhat?

adonis · Posted: Thu Sep 11, 2008 10:03 pm Post subject:

Welcome kdhein,

The new mortgage bill targets first time buyers especially. However, a borrower can get approved for the FHA-guaranteed loan as per the housing bill only if he is able to satisfy the second mortgage.

In your situation, it's a fact that you don't have rights over the mortgage company because the second mortgage is subordinate to that of the first.

Even if you pay for the back taxes or realtor fees, do you think the buyer will be ever able to pay off the first mortgage or the second?

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