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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??
i have a property financed by a private lender (last property owner). They have first lein. I also have a second lein on same property by a bank. I am behind on payments. ex owners are willing to take the property back and release me from the obligation. Can 2nd lein holder stop the change in qwnership and if so, how can this transaction be completed?
Posted on: 18th Mar, 2010 06:12 pm
hi perry,

the first lien holder has the right to take over the possession of the property if you default on the first loan. however, the bank holding the second mortgage will come after you for the outstanding balance on the loan. i’m not sure how the entire transaction will take place, but looks like the property will have to be foreclosed and sold off at an auction and the proceeds will be used to pay off the first and the second lien. if there remains any deficiency, the bank will come after you.
Posted on: 18th Mar, 2010 11:59 pm
My house was foreclosed. A 2nd loan still exists as they got nothing from the mortgage company. Without any court order they drained my checking account of $3,000. now they are threatening to come after me and garnish my wages. Can they do this? Is there any way to lower the amount?
Posted on: 18th Apr, 2010 07:18 am
my heloc is with the same bank that i have my savings and checking accounts. The 1st mortgage forclosed on house during that time the credit union took out the balance of my accounts in the amount if $3000.00 can they do that with notice? can they still come after me for balance? (minnesota) Why in a short sale does the meloc get $3000.00 and that is all they get. They made it sound like they could not come after you for the balance in a short sale?
Posted on: 18th Apr, 2010 08:55 am
To lexie,

If your second mortgage holder has gotten nothing out of the foreclosure sale of the home, they have the right to come after you to recover the outstanding loan balance. However, they cannot withdraw money from your checking account unless they have obtained a judgment against you. If they get a judgment against you, they can garnish your wages as well. You can talk to the lender and check out if you can settle the debt for a lower amount.

To shari,

Your credit union can take money out of your account only if they've got a judgment against you. They can come after you to recover the remaining balance on the loan, even though they have taken money out of your accounts. Heloc loans are secured loans and the lenders are allowed to sue the borrowers if they fail to recover the loan balance from the sale of the home.
Posted on: 20th Apr, 2010 03:58 am
I live in Minnesota and have a home that is going into foreclosure. Can this effect another home I have? Can the lender put a lien,etc. on my other property?
Thanks for your help!
Posted on: 14th May, 2010 03:08 am
Welcome Monick,

After a foreclosure, the lender will be able to come after you for the deficient balance resulting from the sale. If you are unable to pay the deficient balance, then the lender can file a lawsuit to get a judgment and place a lien on your property.
Posted on: 17th May, 2010 12:48 am
as long as it was all purchase money on the 80/20, the 20% can take a hike! But, they will consider it a defiecientcy or whatever for 7 years on your credit. Statue of limitations. In az that is. Good luck to all!
Posted on: 27th Jul, 2010 03:55 pm
I hate it when people say this:

"... but I would consult with an attorney about how to proceed depending on if you would like to keep the home or not."

it's just a cop out, wouldn't you think if we could afford it, or have an attorney we would ask them, most attorneys won't tell you squat for free, I know I've meet with a bunch of them
Posted on: 27th Jul, 2010 11:06 pm
It depends on what state you are in. In FL (a recourse state) yes they can sue you for the difference in a non recourse state they cannot. Be careful though as some states are non recourse on 1st mort. and recourse on the 2nd.

As for getting sued, there is a statute of limitations that vary state to state. In FL after 5 years they cannot collect on the difference. You still owe them and it can show on your credit report for up to 10 years but the court will not award a deficiency judgment after this time.

As for the lady on soc. sec. NO-ONE can garnish that, no matter what state you live in. If that is the only income you have let them sue you, you have nothing they can get. If you tell them this they will probably drop it.

In most states if you file bankruptcy the difference will get washed away. The person that had the business bk, that is completely separate, you can still file a personal.

As for the guy who sold a property to a family member, if you properly recorded the mortgage yes you can sue both of them (assuming they both were on the note).
Posted on: 17th Aug, 2010 08:32 pm
Can a bank that foreclosed the 80 part of the mortgage come after you
years down the road when they sold the house for under market value?
Can they take new property from you?
Posted on: 25th Aug, 2010 04:27 pm
Hi Cinda!

Welcome to forums!

If the Statute of Limitations is over, then the lender won't be able to legally sue you for the debts. They won't be able to place a lien on your new property even.

Feel free to ask if you've further queries.

Sussane
Posted on: 26th Aug, 2010 01:39 am
Hello,

I 'm wondering with good intentions . Can I get a second mortgage,to pay late payments, when I am in default on My first.?
Posted on: 30th Aug, 2010 09:24 am
If you've defaulted on your first mortgage, then the lenders won't be ready to give you a second loan. Moreover, I guess, you don't have equity in your property. If you don't have equity in your property, you won't qualify for a second mortgage.
Posted on: 31st Aug, 2010 02:48 am
i did a short sale on my property back in Feb. first was satisfied and second Bof A was the second they are now calling me daily to make payment arrangements... i have very little money and no other debt is it worth going bankrupt over this ? can they garnish your wages? will it go away after a certain point :(
Posted on: 06th Oct, 2010 11:01 am
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