what are the consequences on paying first mort.on time every

mlange · Joined: 18 Nov 2007 Posts: 1 1.42 Dollars($)

first mortgage is through taylor bean and the second mrtgage through gmac mort... if i continued paying my first mortgage on time and stopped paying my second mortgage,what would be the course of action against me??could they force me out even though im satisfying taylor bean mort???? thank you

banker0679 · Posted: Sun Nov 18, 2007 11:56 am Post subject:

yep. they will foreclose on your home for the 2nd mortgage....happens all the time with HELOCs

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Mlange,

The second mortgage is also a secured debt where you have kept your home as the collateral.

So, if you default in making payments to your second lender, he has all the rights to foreclose on your property.

Since the first mortgage lender holds the primary lien on your property, the second lender has to buy out the first in order to get a clear title.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Mlange,

I agree with the above posters. If you do not pay the second mortgage, the lender will foreclose as the house is the collateral of the second mortgage. You can refinance or pay the second mortgage in full. Or you can talk to the lender and find out what are the options available for you. If you do not take any steps your lender may foreclose the house.

Thanks,
Larry

evolovik26 · Posted: Mon Nov 19, 2007 9:10 am Post subject:

The lender will only foreclose if they think they can get their money back. Since they hold 2nd lien it means they will have to pay 1st lien in full, pay for the lawyers, and get a low price for your home since theyare selling on the auction. The only way they are getting their money back if you have 20%+ equity in your house. So even though they have the legal right to do this they arent likely to foreclose on your house as long as you paying your 1st.
However your credit wil be ruined and you will get alot of mail and phonecalls from them.

scherzeroni · Joined: 05 Jan 2008 Posts: 51 18.77 Dollars($)

Call your second mortgage lender for a work out solution to get back on track. Most lenders offer something since they really dont want to foreclose especially if they are in second lien position.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

I agree with Irene.

Guest 0.10 Dollars($)

what is the meaning of shortsale when seeling a house? does it damage credit?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi mark.

Welcome to the forum.

Short sale is a popular process to avoid foreclosure. But you need to take confirmation from the lender for it. Generally if you sell the property with less than what you owe to the lender. So it is called short sale.

The lender can come after you for the deficiency judgment and short sale also affect your credit but not as much as foreclosure or deed in lieu of foreclosure and you can even get approve for another home loan within 18 months if you can improve your credit properly.

Feel free to ask if you have any further questions.

Best of luck,
Larry

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