Posted on: 10th Dec, 2009 05:06 pm
my first mortgage is for $720k and i'm in good standing with them. the second mortgage (for $180k), however, i'm falling further and further behind with. they're now threatening to foreclose. given that my property is actually appraising for over $1m (more than 10% up since the purchase in 2007), is it likely lender #2 will try to purchase loan #1 and foreclose on me? any suggestions of what i should do?
Hi DAK,
As there is equity in the property, there are chances that the second lender would try to purchase the 1st loan and foreclose your property. However, in most cases, the second lender charges off the loan to a collection agency. I would suggest you to negotiate with your lender and check out if he may help you with a payment plan.
As there is equity in the property, there are chances that the second lender would try to purchase the 1st loan and foreclose your property. However, in most cases, the second lender charges off the loan to a collection agency. I would suggest you to negotiate with your lender and check out if he may help you with a payment plan.
i can't foresee a situation in which a lender holding a note for $180K would decide to pony up an additional $720K to take out the first mortgagee and become the sole lender. that's a pretty hefty investment for what they've already determined is a shaky situation.
by filing for foreclosure, they'll certainly be forcing you to do something, because as soon as they file, your first mortgagee is going to become extremely nervous, no matter that you're paying that loan on time.
if i had a million-dollar property (with equity), i think i'd work with my second mortgagee so as not to jeopardize my situation.
by filing for foreclosure, they'll certainly be forcing you to do something, because as soon as they file, your first mortgagee is going to become extremely nervous, no matter that you're paying that loan on time.
if i had a million-dollar property (with equity), i think i'd work with my second mortgagee so as not to jeopardize my situation.
