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Can 2nd mortgage company sue after foreclosure on first?

Posted on: 15th Sep, 2008 04:27 pm
I had a first and a second mortage on my house which went into forclosure. the first got their money. The second is coming after me for theirs. Can they sue me? Can they put a lein on other property that I own? I got a written letter from an attorney that the 2nd mortgage company retained stating that the amount due must be paid in 30 days or there would be further legal action. What can they do to me??
the second mortgage holder can persue foreclosure on the property that has the lien on it. they cannot come after you or put a lien on another property unless they obtain a judgement for this amount. this would not likely arise until after the house is sold at auction and there is a defiency (shortage) from the sale. most people file bankruptcy at that point to avoid the judgement from the shortage. hope this helps but i would consult with an attorney about how to proceed depending on if you would like to keep the home or not.

if you want to keep this home, i would call the 2nd mortgage holder and ask for a loan modification. many lenders are bending over backwards to come to agreeable terms that are benefical to both since they would rather not have proceed with the foreclosure if at all possible,. most lenders would rather give you a lower interest rate, payment, etc that will allow you to get back on track and eventually pay them back.
Posted on: 15th Sep, 2008 10:31 pm
We have been out of our house for 3 years. We had a 2nd. Mortgage on our Foreclosed house. The 1st. Mortgage took the amount off of our credit and stated the foreclosure, the 2nd. still has the amount due with no foreclosure. I received papers last night that the 2nd. mortgage co. is suing my husband and I. Can they do that since we have not been in the house for 3 years and it was already sold at the auction?
Posted on: 09th Dec, 2008 08:33 am
Hi Janice Stone!

Welcome to forums!

Didn't the second mortgage lender know that your property was foreclosed upon and was sold at the auction? I think they are suing you as you have not paid the amount that was due on the 2nd mortgage. Yes, they will have the right to sue you. You need to speak to them and check out if they have any plans through which you will be able to pay off the debts.

Feel free to ask if you have further queries.

Sussane
Posted on: 10th Dec, 2008 08:55 pm
I have two loans with the same bank and am in foreclosure in California. In California there is a one action rule, they have to do a judicial of non judicial foreclosure. If they do a non judicial foreclosure can the second sue me later of the second?
Posted on: 05th Jan, 2009 05:06 pm
Hi Jason b,

As far as I know, yes, in case of a non-judicial foreclosure, the second lender will have the right to ask you to pay the deficient amount. He may even sue you. There are chances that if you cannot pay the loan, he may even place liens on your other properties.

Thanks
Posted on: 06th Jan, 2009 12:34 am
I had an investment property which I sold to my aunt. She did a 80/20. 80% financing from the bank and did a 2nd mortgage from me (20%). She and her husband divorce and left the house, the house was forclosed on and she is ducking me to pay the rest of my money back. I sent her and her ex-husband court order letters to pay my money back. She countered saying that I conducted business with "un-clean hands" and that she was under distress. All of this is a bunch of BS. I have witnesses, including the title company who were there at signing, who can witness that she wasn't under and distress or duress at signing. Also, I handled all my business in an ethical manner. Is there anything I can do to get my 40k from the two of them. Her ex-husband is a ex-vet and he recieves moeny every month, and she also recieves money from the gov't every month for who know's what. Can some one help me out?
Posted on: 02nd Feb, 2009 09:41 am
if you are with the same bank can a home equity line be a second mortgage or two part of one loan
Posted on: 10th Feb, 2009 12:22 am
Don't have much both my husband and I are on social security can they take money from that even if it goes straight to the bank
Posted on: 10th Feb, 2009 12:28 am
One more question: If they say we owe money on the second can they only put leins on properties: not touch bank accounts or take out monies from the bank?
Posted on: 10th Feb, 2009 12:48 am
modication do you know if indymac is putting the first and second together as one loan
Posted on: 11th Feb, 2009 06:33 am
We had a morgage on a home in Iowa. We lost our job and and had to move and finally we sold our house with a shortsale. We had a loan for $16,00.00 they are now sueing us for that money, which is now $20,000.
We are now out of state and cannot afford much and we were told that it would be more than $50 -$100. They said they would garnish our wages. We cannot file bankruptcy, we had done that on a business 3 years ago. I am stressed out and do not knw what to do. Can they really garnish our wages and can we set up payment for what we can afford?
Posted on: 23rd Feb, 2009 04:28 pm
Hi Renee,

In a short sale, you are liable to pay the deficient amount resulting from the sale of the property. If you do not pay this deficient amount to the lender, then he can garnish your payments.

You can definitely negotiate with your lender and try to set up a payment for what you can afford. But it will be the discretion of the lender whether he will agree to it or not.

Thanks.
Posted on: 24th Feb, 2009 01:16 am
I had a 80/20 loan with the same bank they sent the 20 portions to a collection agengcy and made forberanceagreement for modification on the first can I still beforclosed because the second is still diliquent
Posted on: 26th Mar, 2009 03:33 pm
Hi Toney

A query similar to yours has been answered in the given link:
http://www.mortgagefit.com/problems/collections-forbearance.html#84949

Please check it out. I hope it would help you.

Thanks.
Posted on: 27th Mar, 2009 01:29 am
When I bought my house I took out two morgage loans. I was foreclosed on about a year ago and the house is forsale. The house has not been sold yet but the second mortage company has turned me over to a collection agency who is calling wanting 20,000. Can they come after me before the property is sold?
Posted on: 12th May, 2009 04:35 pm
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