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No. Once the first mortgage or deed of trust is foreclosed, the second mortgage and any inferior liens are voided.
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Owe 65 thousand to first mortgage 40 thousand to second mortgage but second mortgage is foreclosing how will first mortgage get there money?
In foreclosure proceedings the 1st mortgage gets their money first. Either the 2nd mortgage will have to buy the 1st mortgage entirely and then sell your house or they will have to hope that whoever buys the mortgage at auction, will bid enough to pay them off.
If you have a second mortgage but your first mortgage was foreclosed on do you still have to pay back the second or would it be rolled into the first mortgage?
Once the primary mortgage forecloses and the property is sold at auction, the 2nd mortgage becomes just another unsecured debt. If the 2nd lender received no funds from the sale of the property, then you ARE liable for the full balance of the 2nd mortgage - plus interest when it goes delinquent. Use care, this will differ depending on the state, but it's not uncommon for the 2nd mortgage note holder to use any means necessary to get back their loan amount, including foreclosure. Often a second mortgage note holder will attempt to purchase the primary note. One potential issue can play out as follows: * A homeowner finds themselves in financial trouble. * They successfully negotiate a payment plan with their primary lender, but remain in default against their second mortgage loan. * The second lien holder then purchases the primary mortgage (which is still in good standing) and forecloses. * Homeowner finds themselves losing their home to the 2nd mortgage lender.
Can a first mortgage foreclose with a second?
Yes. The second is subordinate to the first mortgage and therefore is at greater risk. If equity exists, the 2nd mortgage holder may receive payment for the debt when a senior lender forecloses. If there is not, then their lien on the property is wiped out and they must pursue the borrower in another fashion (such as a lawsuit). If the 2nd mortgage lender does not want the 1st lender to foreclose, they may choose to pay the 1st mortgage current before the foreclosure proceeds and attempt to collect or foreclose themselves.
How do you record a 2nd mortgage?
You file it in the same registry as the first mortgage.
What is subordinate second mortgage?
Deeds of Trust (mortgages) have a position on title based on seniority (1st, 2nd, 3rd). So if a new 1st mortgage wants to go into first position in a refinance transaction but there is already a 2nd mortgage, they must ask the 2nd mortgage to allow them to go ahead of them on title. The 2nd mortgage lender will review the proposed loan, and either approve or deny the request. This is most common when a borrower wants to retain the terms of the 2nd mortgage or they do not have enough equity to borrow a sufficient amount in the new loan to pay off the 2nd mortgage.
What happens to the first mortgage if the second mortgage is in foreclosure?
nothing...it remains a lien on the property and a debt which is assumed by the successful bidder at the auction of the 2nd mortgage
Owe 65 thousand to first mortgage 40 thousand to second mortgage but second mortgage is foreclosing how will first mortgage get there money?
In foreclosure proceedings the 1st mortgage gets their money first. Either the 2nd mortgage will have to buy the 1st mortgage entirely and then sell your house or they will have to hope that whoever buys the mortgage at auction, will bid enough to pay them off.
With second mortgage holder asking the homeowner to sign a deficiency judgment isn't this lien dropped if the home is foreclosed and goes to public auction?
HOMEOWNER SHOULD SIGN NOTHING...the 2nd mortgage is cut off in the foreclosure action against the 1st mortgage as it affects real property...if the 2nd mortgager holder is looking for a signature, then they should get it from the judge
If payments have been made to the second mortgage but not to the first Mortgage can the first mortgage holder reclaim any of those payments from the second mortgage holder?
No, the first lien hold cannot claim or collect any monies from the 2nd lien holder. The lien holders sole recourse is with the borrower.
Is it legal to collect a finders fee from a mortgage broker?
Yes, you can collect a finders fee from a mortgage broker. Gifts and money are exchanged in this situation all the time.
If you have a second mortgage but your first mortgage was foreclosed on do you still have to pay back the second or would it be rolled into the first mortgage?
Once the primary mortgage forecloses and the property is sold at auction, the 2nd mortgage becomes just another unsecured debt. If the 2nd lender received no funds from the sale of the property, then you ARE liable for the full balance of the 2nd mortgage - plus interest when it goes delinquent. Use care, this will differ depending on the state, but it's not uncommon for the 2nd mortgage note holder to use any means necessary to get back their loan amount, including foreclosure. Often a second mortgage note holder will attempt to purchase the primary note. One potential issue can play out as follows: * A homeowner finds themselves in financial trouble. * They successfully negotiate a payment plan with their primary lender, but remain in default against their second mortgage loan. * The second lien holder then purchases the primary mortgage (which is still in good standing) and forecloses. * Homeowner finds themselves losing their home to the 2nd mortgage lender.
Can a first mortgage foreclose with a second?
Yes. The second is subordinate to the first mortgage and therefore is at greater risk. If equity exists, the 2nd mortgage holder may receive payment for the debt when a senior lender forecloses. If there is not, then their lien on the property is wiped out and they must pursue the borrower in another fashion (such as a lawsuit). If the 2nd mortgage lender does not want the 1st lender to foreclose, they may choose to pay the 1st mortgage current before the foreclosure proceeds and attempt to collect or foreclose themselves.
How do you record a 2nd mortgage?
You file it in the same registry as the first mortgage.
Why do homes go on auction?
People cannot afford to keep on paying for them (mortgage, etc.)
What is subordinate second mortgage?
Deeds of Trust (mortgages) have a position on title based on seniority (1st, 2nd, 3rd). So if a new 1st mortgage wants to go into first position in a refinance transaction but there is already a 2nd mortgage, they must ask the 2nd mortgage to allow them to go ahead of them on title. The 2nd mortgage lender will review the proposed loan, and either approve or deny the request. This is most common when a borrower wants to retain the terms of the 2nd mortgage or they do not have enough equity to borrow a sufficient amount in the new loan to pay off the 2nd mortgage.
How can you get repaid for a 2nd mortgage you hold on a house a bank has foreclosed on?
That will depend on how much the bank gets when it sells the house. If they cover their mortgage and costs, the 2nd mortgage will be paid.
How do I find the best rates for an online mortgage?
There are several types of mortgage loans. The difference between an auction site and a multilender site is the auction site will average out the cost of the interest rate and multilenders offer several different rates for different products.
