answersLogoWhite

0


Best Answer

Yes, a financial company can purchase the lien on your mortgage and then foreclose on your property if you have not made sufficient payments.

The second mortgagee can also foreclose on the second mortgage and take possession of the property subject to the first mortgage. In that case, the lender would have to pay off the first mortgage before it could keep any proceeds from a sale of the property..

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Can a second mortgage company buy the first mortgage and foreclose?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

What happens if someone pays their second mortgage but not their first?

The senior mortgagee (the first) will foreclose and take possession of the property subject to the second mortgage.The senior mortgagee (the first) will foreclose and take possession of the property subject to the second mortgage.The senior mortgagee (the first) will foreclose and take possession of the property subject to the second mortgage.The senior mortgagee (the first) will foreclose and take possession of the property subject to the second mortgage.


Can a bank foreclose if you dont pay on a second mortgage?

Yes. The bank could foreclose and take possession of the property subject to the first mortgage.


What could happen if you have 2 mortgages on the same property and you only default on the smaller of the 2 mortgages?

A mortgage is a promise that you make to the lending company. You promise them that if you don't pay back the loan, then they can have your house. It's no different for the second mortgage except that if you fail to pay either bank, and they both want your house, then the first mortgage holder always wins. If you default on your second mortgage..then they have the right to foreclose and sell your property BUT they have to pay the balance on your first off. If you defalut on your first mortgage then they will give notice to your second mortgage company and give them the option to "accelerate " the mortgage and they can foreclose..but if the second does not then the first mortgage can foreclose and sell your property and only pay the second off if there is enough money from the sale. It really doesn't matter if the mortgage balance is the "smaller" it is who is recorded in first & second lien position.


What rights does the second mortgage holder have if the first mortgage payments are up to date?

If the second mortgage is in default the second mortgagee can foreclose and take possession of the property subject to the first mortgage.


Can a second mortgage holder foreclose on a first bank mortgage holder?

yes, but it rarely happens.

Related questions

What happens if someone pays their second mortgage but not their first?

The senior mortgagee (the first) will foreclose and take possession of the property subject to the second mortgage.The senior mortgagee (the first) will foreclose and take possession of the property subject to the second mortgage.The senior mortgagee (the first) will foreclose and take possession of the property subject to the second mortgage.The senior mortgagee (the first) will foreclose and take possession of the property subject to the second mortgage.


Can a bank foreclose if you dont pay on a second mortgage?

Yes. The bank could foreclose and take possession of the property subject to the first mortgage.


What could happen if you have 2 mortgages on the same property and you only default on the smaller of the 2 mortgages?

A mortgage is a promise that you make to the lending company. You promise them that if you don't pay back the loan, then they can have your house. It's no different for the second mortgage except that if you fail to pay either bank, and they both want your house, then the first mortgage holder always wins. If you default on your second mortgage..then they have the right to foreclose and sell your property BUT they have to pay the balance on your first off. If you defalut on your first mortgage then they will give notice to your second mortgage company and give them the option to "accelerate " the mortgage and they can foreclose..but if the second does not then the first mortgage can foreclose and sell your property and only pay the second off if there is enough money from the sale. It really doesn't matter if the mortgage balance is the "smaller" it is who is recorded in first & second lien position.


What rights does the second mortgage holder have if the first mortgage payments are up to date?

If the second mortgage is in default the second mortgagee can foreclose and take possession of the property subject to the first mortgage.


Can a second mortgage holder foreclose on a first bank mortgage holder?

yes, but it rarely happens.


Can a second mortgage company foreclose on your house?

Yes. But they have to reach an agreement with the first mortgage holder, for example by buying them, out so to speak. It can be complicated to say the least but it can be done.


If you foreclose on your home and proceeds are not enough to pay the first and second mortgage what happens to the second mortgage lien?

You still owe the money to the mortgage provider.


What happens if you can't pay your second mortgage?

The lender can foreclose and take possession of your property subject to the first mortgage.The lender can foreclose and take possession of your property subject to the first mortgage.The lender can foreclose and take possession of your property subject to the first mortgage.The lender can foreclose and take possession of your property subject to the first mortgage.


What happens if you default only on your home equity line but not your first mortgage?

The second mortgagee can foreclose and take possession of your property subject to the first mortgage.


If the second mortgage foreclose who pays the first loan?

If the second mortgagee forecloses and takes possession of the property it must pay the first mortgage or if they sell to a third party that party takes the property subject to the first mortgage.


Can second mortgagee pay off first mortgage and take the property by foreclosure?

Yes. The second mortgagee can foreclose if the mortgagor defaults. The second mortgagee would take title subject to the first mortgage and must make those payments or pay it off.Yes. The second mortgagee can foreclose if the mortgagor defaults. The second mortgagee would take title subject to the first mortgage and must make those payments or pay it off.Yes. The second mortgagee can foreclose if the mortgagor defaults. The second mortgagee would take title subject to the first mortgage and must make those payments or pay it off.Yes. The second mortgagee can foreclose if the mortgagor defaults. The second mortgagee would take title subject to the first mortgage and must make those payments or pay it off.


What recourse does a second mortgage holder have against you if you don't pay that mortgage?

If you don't pay the mortgage the second mortgagee can foreclose and take possession of the real estate subject to the first mortgage. Many of them do just that.