This depends on the state and the nature of the second mortgage (purchase, refinance etc.). Once a senior lien (1st mortgage) has foreclosed on the property, the second mortgage holder on a refinance (non-purchase) loan may pursue the borrower for the balance owed. They may take the borrower to court and obtain a judgment against the borrower. While the action the court approves may vary, one of the more common outcomes (if they are successful) is wage garnishment. With the prevalence of bankruptcy filings, monetary recovery is becoming more difficult for lenders to obtain.
Debtors can go after the assets of the estate. These assets will have to be liquidated to settle the debts.
can i get aloan to fix my house without taken a second mortgage out
The amount that the bank forgave the difference from what you owed and the house is worth will be issued to you on a 1090 form and you will owe tax on that amount.
How do you get out of a second mortgage when the house has been sold on a short sale?
Sexytime with banker.
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.
No.
The liens that predate the foreclosed mortgage must be paid such as a prior mortgage. The http://taxes.answers.com and any municipal services liens must be paid. Any mortgages, attachments, etc that were recorded AFTER the foreclosed mortgage get wiped out as liens against the property.
Debtors can go after the assets of the estate. These assets will have to be liquidated to settle the debts.
That depends on whose name was on the deed when the mortgage was executed.
can i get aloan to fix my house without taken a second mortgage out
The bank does not care who holds the mortgage. If the loan is not being paid, it can be foreclosed on.
How do you get out of a second mortgage when the house has been sold on a short sale?
The amount that the bank forgave the difference from what you owed and the house is worth will be issued to you on a 1090 form and you will owe tax on that amount.
Check the laws in your state, but NO, they cannot. Your old house secures the mortgage on THAT house. Nothing else.
Sexytime with banker.
The answer is Yes, the construction loan is considered a regular mortgage. So if you stop paying the mortgage, it will forclose and show on your credit report.