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What happens to to second lien if borrower defaults on first lien?
Wiki User
∙ 16y ago
It may be accelerated and payable from the excess proceeds of the auction held by the first lienor in foreclosure, if there is any excess.
--- improve the answer: If seond lien is not a superior lien (e.g. Tax lien is superior than MGT lien), when the first lien is foreclosured the second lien will be washed out --- Not exists any more. However, a superior lien, even a second lien, will still survive the foreclosure process which means the property owner (who has bought the property during foreclosure) still needs to pay.
Wiki User
∙ 16y ago
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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.
Is the lender obligated to notify a cosigner if a payment is past due in the State of Wisconsin?
No, the cosigner may be the first one the lender attempts to collect from if the primary borrower defaults. That will probably be the only "warning" one receives.
What is first charge?
If more than one loan is secured on the property, the lender with the first charge has the first call on the property if the borrower defaults on the loan. the primary mortgage or loan secured against a property which takes precedence over all other finance secured against it.
What rights does a second mortgage holder have if owner defaults on his loan?
The second mortgagee can foreclose and take possession of the property. However, it would take possession subject to the first mortgage.
Why wont your Chrysler town and country downshift back into first gear?
The transmission computer defaults to second gear when it detects a malfunction and sets a code.
What happens to the second mortgage if the first mortgage is sold?
Nothing happens to it. It still remains in second place.
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.
Describe what happens first second and so on?
No
If you co-sign an auto lease can you be listed on the loan second or do you have to be listed first?
Doesnt matter too much, you will be just as responsible if the primary buyer defaults.
How long can a second mortgage company try to collect on a foreclosed loan?
This answer will vary by state and depends on the situation. In one-action states such as California, if a lender foreclosed they cannot pursue the borrower further. If a first foreclosed the second is free to persue the borrower. In California the statute of limitations for collection of a debt is 7 years.
What happens to the second mortgage if the first mortgage is paid off?
you then only have to pay the second
What happens at the second communion?
Nothing special happens at a second communion. It is only the first Communion that is particularly celebrated, because it is the first. From then on, it is done in a normal way, with no special attention.
