Posted on: 23rd Apr, 2009 02:55 pm
Hi, I am currently going through divorce and I am being awarded the family residence which has a 1st and 2nd mortage. I will be able to catch up the 1st mortgage, but the 2nd is severly behind (almost 9 months). What rights does the 2nd mortgage lender have if I continue not making the payments?
Thanks!
Thanks!
I believe they have the right to foreclose.
hi lola,
if you continue making payments towards the first mortgage, it is unliely that the second mortgage holder will foreclose on the property because they hold a second lien position and if the house is foreclosed they will be paid only after satisfying the first loan. thus it would not be a very profitable deal for the second lender to foreclose. they can however, sue you or place lien on your property.
if you continue making payments towards the first mortgage, it is unliely that the second mortgage holder will foreclose on the property because they hold a second lien position and if the house is foreclosed they will be paid only after satisfying the first loan. thus it would not be a very profitable deal for the second lender to foreclose. they can however, sue you or place lien on your property.
Ffirst mortgage would get paid off first, and then any funds remaining would be used to pay off any second mortgages.For this reason, second mortgages typically carry a higher rate of interest.
For future benefit you should pay second mortage.
Thanks
For future benefit you should pay second mortage.
Thanks
Have spoken to your lenders and asked for a loan modification program.
Probably yoru situation may justify this.
Probably yoru situation may justify this.