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What if your home already foreclosed but the 2nd mortgage still wants us to pay-how do you deal with this?
Wiki User
∙ 15y ago
File for bankruptcy or just let the second loan also go into forclosure.
Wiki User
∙ 15y ago
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What happens to second mortgage if first mortgage is foreclosed?
If the first mortgage is foreclosed the second mortgage lien gets wiped off the property by the foreclosure so the property can be sold free and clear of the second mortgage. However, the mortgagor still owes the debt to the lender and the lender can pursue collection of the amount due by a civil lawsuit.
If you have not defaulted on your mortgage and your term is up can they foreclose?
If it's paid they have no interest however you can still get foreclosed if you are arrears in property taxes:(
After a relief from stay is granted to the mortgage company is the property still a part of the bankruptcy estate or does the mortgage company now have ownership rights to the property?
It is still yours until foreclosed formally...the stay just means they can do so.
If your home mortgage is foreclosed and you have a second mortgage do you have to pay the second?
Yes. Any junior liens on the property are extinguished, but the debts themselves still remain (it may be hard to enforce them, though).
If you make partial payments can you still be foreclosed?
Typically yes, failure to make the payment required as specified in the mortgage note is usually written in as a default.
Do you still owe for second mortgage?
Yes. "People with a second mortgage who are facing foreclosure should go to bankruptcy to get rid of the unsecured second-mortgage note," she said. "They should do it as soon as they're foreclosed upon, because that's when they're at rock-bottom, not when they've started to rebuild (their finances)."
What happens to the first mortgage when the second mortgage forecloses?
AnswerThe first mortgage would have the first position on the lien. So if the second mortgage company foreclosed on the property - they would sell the property and the sale proceeds must go to pay off the first mortgage company first. Then, if there is anything left over, that money goes to the second mortgage company.For example, there is a first mortgage of 100,000 and a second mortgage of 40,000. The property is foreclosed and sold for 125,000. The first mortgage gets paid off (100,000) and the second mortgage company gets the remaining 25,000.The property owner still owes the second mortgage company the other 15,000.--------------------------------------------------------------------------------------------------------------Not true. Maybe different laws in different states but here the 2nd mortgage foreclosure sale does not directly effect the 1st mortgage. It remains a lien.
When a house is auctioned do you owe the balance of the mortgage after it is sold?
If the home was foreclosed on, you are still liable for the balance on the loan. Depending on the circumstances, some investors may not want to pursue it if the cost to collect exceeds the amount being collected.
What is a Notice of Rescission of Declaration of Default and Demand for Sale and Notice of Default?
A Notice of Rescission of Declaration of Default is a mortgage loan that was once in default, and a notice of default would mean that the loans are still currently foreclosed in a way.
What happens if your landlord's house is foreclosed?
As long as your landlord has control of the property he still has the right to collect rent: whether the house is foreclosed is between your Landlord and his mortgage lender. If the property is taken over by the mortgage lender they may ask you to leave. There may be some form of protection available for you, the Tenant, before you are forced to leave. Get legal assistance as soon as you learn about the foreclosure so that you can be prepared for what's next. You may or may not be required to leave soon.
If your home is foreclosed on are you still liable for the mortgage?
To answer this we would need to know where the home is. States such as California only allow lenders one action, which is usually the foreclosure. After that they can not be persued. A second mortgage however, may persue if they did not do the foreclosure. Other states allow for deficiency balances to be persued through collection actions and the courts.
If a property is included in bankruptcy do you still own it until it is foreclosed on?
Yes.
