Posted on: 24th Dec, 2008 01:22 pm
if a home was financed on with an 80/20 loan and the home is foreclosed and sold at auction, is the borrower still financially liable for the second mortgage?
Hi Guest,
Yes, you will be liable for paying off the second mortgage. However, as you have mentioned that the property was sold at an auction, there are chances the second mortgage lender will charge off your loan. Charge off does not mean that the loan is forgiven. It only means that the loan is sold to a collection agency who will in turn collect the dues from you.
You can find a discussion on a similar topic in the given link:
http://www.mortgagefit.com/discuss/homeforeclosed-affectsecondloan.html
Wish you a merry Christmas.
Thanks
Yes, you will be liable for paying off the second mortgage. However, as you have mentioned that the property was sold at an auction, there are chances the second mortgage lender will charge off your loan. Charge off does not mean that the loan is forgiven. It only means that the loan is sold to a collection agency who will in turn collect the dues from you.
You can find a discussion on a similar topic in the given link:
http://www.mortgagefit.com/discuss/homeforeclosed-affectsecondloan.html
Wish you a merry Christmas.
Thanks