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What could happen if you have 2 mortgages on the same property and you only default on the smaller of the 2 mortgages?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
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What can happen with an adjustable-rate mortgages?
AR mortgages have monthly payments that are determined by market interest rates. While interest rates are low, your payments will be low. If the market changes suddenly, your rate go can up very high and very quickly. This is what happened to many people in 2008.
What happen if default on car loan?
The loan company takes the car. You loose it unless you make up the missing payments and pay the fees.
If you default on a personal loan what can happen?
The lender will begin collection proceedings against you. Being a personal loan, if like most it is secured only by your signature, likely as not the lender will go legal as quickly as possible so as to secure the debt with a judgment and allow for greater variety in collections. If the loan is secured by property, count on it being repossessed.
How may missed mortgages payment until you are in foreclosure?
Mortgages can be written with a lot of different terms and laws, especially real-estate laws, vary greatly state to state. State law also dictates the actual process of foreclosure. Foreclosure doesn't happen when you miss x number of payments. Foreclosure is the legal process of the bank or lender trying to take away your legal right to lay claim to any equity you have accumulated in your home. They do this so that, if and when they have to repossess your home, they don't have any problems trying to sell if because you still have a financial claim to the property. Foreclosure happens when you default and a bank decides they need to foreclose so they can then evict you and resell the house. If you are missing payments on your mortgage, you need to talk to your bank/lender and talk about what's going on. Banks do not like to have to go through all the work to foreclose, evict, and sell a home. But, if you are missing payments, you need to talk to someone to figure out what the options are and which option is best for you.
What can happen to a home or farm when the owner fails to pay off loans taken to buy the property?
Foreclosure.
What can happen to you if you are behind on paying your property taxes?
If you are in default on your property taxes the municipality can record a tax taking against your property and commence an action to take possession of your property. Even if you pay up at that point there will be costly fees, interest and charges added to what you originally owed.
What is imminence?
A default is about to happen.
In NJ can you be on the deed but not on the mortgage?
Yes, it's possible to be a grantee on the deed and not listed on the mortgage. All owners of the property are supposed to sign and be listed on the mortgage, but this doesn't always happen. During the refinance frenzy a few years ago, some lenders gave out mortgages to only one owner. If that is the case and there is a default on the mortgage, the lender can only foreclose on the interest of the person who actually signed the mortgage. See related question link.
Private property repossesion?
What will happen when your property is auctioned off?
What happen it you dont show up for court?
Generally lose by default.
What is imminent default?
Imminent default refers to a situation where a borrower is very close to being unable to meet their debt obligations. It signifies that the borrower is at high risk of defaulting on their loans in the near future.
If i cosign a loan for refinancing a home for a family member and they default what can happen?
You will be responsible for the money.
What could happen to your monitor if you do not have a screensave?
It would use a default like the windows screensaver.
What is the law and what will happen if remainder of downpayment is not paid?
READ your contract. It should tell you what will happen if you DEFAULT on the contract. What does your common sense tell you will happen if you dont do what you said you would do??
Why do you need property insurance?
To protect your property and if anything were to happen to it your insurance can help you finically.
What would happen if you failed to appear for a disposition?
You would probably lose by default but check in your state.
What could happen to a cosigner if the income taxes were not done on a property?
Property does not have an income tax return.
