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If you have a lien on one house and it is going into foreclosure will and we have a second house will anything happen to the second house and can they garnish your wages?
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∙ 16y ago
Did you record a Homestead on either house?
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∙ 16y ago
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What happen to second loan after foreclosure?
They only foreclose on the 1st loan. The 2nd will go as a charge off as bad debt. They may sue you to get a judgment on it. I had an 80/20 loan and on my credit the 80 loan was only showing as foreclosure, the 20 was coming up as charged off
When a second mortgage is in foreclosure does the first mortgage show as a foreclosure?
No, they are two separate loans. If the second mortgage is foreclosed the lender takes possession of the property subject to the first mortgage. The borrower no longer owns the property.
What happens to second mortgage in foreclosure?
After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court.After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court.After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court.After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court.
Can you do a voluntary foreclosure aka deed in lieu of foreclosure if there are two different lender mortgages on the house?
Unless you are willing to give the junior lienholder (the second mortgage lender) some sort of compensation (like a shortfall payoff), it can be difficult. Once a deed in lieu of foreclosure is done, only one bank gets the real estate. Typically, it's the first lienholder. The second mortgage would need to be released in order for that to happen. Banks may be more willing to consider "charging off" the second lien in recent months, since they know that if the loan does go into foreclosure their mortgage is going to be wiped out anyway, but it is often difficult to get them to voluntarily release their lien prior to foreclosure. Often, though, they will take a nominal amount - even $500 - since getting something is better than nothing.
Can you go into foreclosure if you default on your second mortgage?
Yes. Your second mortgage is secured by your home, so if you default on payments, the lender has the right to foreclose.
After chapter 7 bankruptcy second mortgage was reaffirmed but not first mortgage if there is a foreclosure who gets their money?
In a foreclosure, creditors are paid in the order of their liens. A first motgage is paid first. Anything left over goes to the second, and if there is still anything left of proceeds, it goes to the third or to the debtor. Taxes and other municipal liens are paid before anything else.
Can a first mortgage lender omitted from foreclosure and let the second foreclosure?
Yes, but whomever buys at the second foreclosure will own the property subject to the first lienholder's debt. The first lienholder can still foreclose and wipe out the second.
What are the judgment laws in Minnesota?
Minnesota is both a judicial and non judicial foreclosure state . Foreclosure by action is a judicial foreclosure and foreclosure by advertisement is a non judicial foreclosure . The vast majority of foreclosure than happen in MN are by advertisement. Under foreclosure by advertisement the rule is that however takes the loan to sheriff sale relinquishes their right to a deficiency judgement. As most foreclosures are initiated by a first position mortgage there is still a potential deficiency that could arise from a second position mortgage.
Can a lender garnish wages on second mortgage?
Yes.
Is tax on continuing a second mortgage deductible after filing for a first foreclosure?
Even if you have had a foreclosure, tax on a second mortgage or home equity loan is still deductible.
If two people are on the deed but only one is on the mortgage can the second person do anything to prevent foreclosure?
no,because that persons name is not on the deed .. unless the second person gives money to the person paying the mortgage
Can a second mortgage put your home in foreclosure?
Yes, any unpaid mortgage can put your home in jeopardy of foreclosure.
What happen to second loan after foreclosure?
They only foreclose on the 1st loan. The 2nd will go as a charge off as bad debt. They may sue you to get a judgment on it. I had an 80/20 loan and on my credit the 80 loan was only showing as foreclosure, the 20 was coming up as charged off
Can I do a Bankruptcy and foreclosure with a second mortgage at the same time?
YOU don't evcer do a foreclosure on what you own. the bank does. Bankrutpcy overrides foreclosure and in fact will essentially delay it while the property is sold in the BK process.
Does is make a difference if you have one foreclusure or 2?
The first foreclosure will have the largest impact on one's creditworthiness as the home is considered the most important asset to protect (largely by keeping up with mortgage and tax payments). The belief is that if one does not keep up payments on their home, why would they keep up payments for anything else as anything else is insignificant in comparison. The foreclosure will stay on your credit record for up to 10 years and will negatively impact your credit score throughout the entire period. If you got your second foreclosure within those 10 years, your credit rating will be lowered, but not as much that resulted from the first foreclosure. If you got your second foreclosure more than 10 years after getting the first, your credit rating will be negatively impacted to the same level as the first was.
Can a second mortgage lender garnish wages in SC for a foreclosure where the first lien took back the collateral?
If they were not part of the foreclosure deal, meaning that they didn't sign off on the short sale, then the loan is still outstanding. I suppose you didn't make the requested payments, so they are following up by garnishing your wages for payment. Check in with a real estate attorney, but you probably have a choice between paying up or having your wages garnished.
If you are in foreclosure for your first mortgage are you still responsible for the second mortgage if there is a second mortgage on the property?
If your first mortgage is in the process of foreclosure that foreclosure will extinguish the second mortgage as to the real estate. The foreclosure of the first mortgage terminates all subsequent interests in the real estate. After the foreclosure the real estate can be sold free and clear of any subsequent mortgages or liens. However, the debtor remains responsible for the second mortgage debt.Any remaining proceeds from the foreclosure sale after the first mortgage is satisfied are paid toward the second mortgage. In some states the second mortgagee can seek a "deficiency judgment" in court against the debtor. However, even when possible it's not often done due to the costs and the slim probability the debtor will have the ability to pay.You should check your state laws.
