Posted on: 14th Jun, 2010 08:16 am
we too are second mortgage holders on property. the gentleman has not paid us since november but he continues to pay his first mortgage. we were told we could not forclose on him unless we wanted to take over his first mortgage is that correct?
thanks
thanks
Hi roxie!
Welcome to forums!
As you are the second mortgage holder, your loan is subordinate to the first mortgage. Thus, if you foreclose the property, you'll have to pay off the dues of the first lender before satisfying your own dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you are the second mortgage holder, your loan is subordinate to the first mortgage. Thus, if you foreclose the property, you'll have to pay off the dues of the first lender before satisfying your own dues.
Feel free to ask if you've further queries.
Sussane
You can foreclose due to nonpayment of your second mortgage, but, only do that if there is enough equity in the property to pay off the first mortgage and have some left over to pay some or all of your second mortgage.
If there is not enough equity in the property to pay off the first mortgage and then pay some or all of your expense and mortgage, do not do it. You would be spending money to foreclose and you would not get anything back after pay off of the first mortgage.
If there is not enough equity in the property to pay off the first mortgage and then pay some or all of your expense and mortgage, do not do it. You would be spending money to foreclose and you would not get anything back after pay off of the first mortgage.
It is not in the 2nd lien holders benefit to foreclosure, even though the 2nd lien holder can foreclose. The 1st lien holder will usually take the lead. However, if you foreclose make sure this is enough equity in the property to do so, since the 1st lien takes priority over the 2nd lien position loan. Being the 2nd lien holder, you should take a back seat and wait it out unless there is equity. but as we know it these day, many homes are running low on equity. You are in 2nd place. visit my site below more answer to question like these.