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HOMEOWNER SHOULD SIGN NOTHING...the 2nd mortgage is cut off in the foreclosure action against the 1st mortgage as it affects real property...if the 2nd mortgager holder is looking for a signature, then they should get it from the judge

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โˆ™ 2007-07-03 18:58:45
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Q: With second mortgage holder asking the homeowner to sign a deficiency judgment isn't this lien dropped if the home is foreclosed and goes to public auction?
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Related Questions

Can the private mortgage insurer sue the homeowner for the deficiency it pays to the lender after a foreclosure?

Yes, the private mortgage insurer can sue the homeowner for the deficiency. They can get a judgment against the home owner for the difference.

How do you know if you would get a deficiency judgment on your forclosure. Do they go after pension or social security?

Can there be a deficiency judgment on a mortgage forclosure in virginia?

If you are a co-owner of real property did not sign the mortgage and it's foreclosed can you be held responsible for a deficiency judgment?

If you did not sign the mortgage then you have no obligations relating to it. You are not responsible for any deficiency. If you owned the property at the time the mortgage was executed by a co-owner, the lender cannot foreclose on your interest at all. If you received your interest by deed after the mortgage was executed the lender can take possession of the property and you will be dispossessed of your interest.

Can a mortgage company report a foreclosure?

Yes. A foreclosure can be reported by the entity that foreclosed, by the servicing agent for the entity that owned the mortgage when it was foreclosed or by a mortgage company if it held the mortgage when it was foreclosed.

Does the state of Illinois allow mortgage companies to sue for a deficiency judgment after the foreclosure?


What is a deficiency judgment?

A deficiency judgment is where the owner of a mortgage or deed of trust is awarded a judgment against the borrower in the amount of: the amount of money owed in the mortgage or deed of trust minus the amount of money the property sold for at foreclosure sale If the above amount is a positive number, some states allow the lender to get a judgment for that amount.

Will the excess amount in foreclosing real estate mortgage given to th mortgage or not?

I'm not sure this question was complete, but the answer is that any excess equity after a property is foreclosed will go to the prior homeowner. In other words, if a home is foreclosed and the home sells at auction for more than was owed to the bank, the excess will go to the homeowner who was foreclosed upon. Keep in mind many fees and charges may be attached to a foreclosure, so the equity may be limited.

Can there be a deficiency judgment on a mortgage foreclosure in West Virginia?

No, adeficiency judgment may not be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures.

Do I still have to pay back my mortgage company after they foreclosed my home?

It will depend on the contract and conventions where the foreclosure took place. In many states where homes loans are secured by a trust deed the lender can only force the sale of the house and there is no possibility of a deficiency judgment when the sale was a trustee sale. If you really want to know have a lawyer in your state review your contract and default action the lender has filed. Lenders can file for a judicial action which can include a deficiency judgment if they believe there was mortgage fraud and the borrowers has assets.

What can a lender do when the second mortgage is not paid in full due to foreclosure?

Assuming that the FIRST mortgage was foreclosed, a foreclosure wipes out any mortgages that were recorded after the foreclosed mortgage.

What are the deficiency judgment laws in Indiana?

If there is an agreement and an applicable waiting period is not waived, a deficiency judgment may be obtained on a mortgage in Indiana. This means that deficiency judgments in the state of Indiana are allowed by state statute if it is authorized by loan documents and if borrowers do not waive applicable waiting period.

What is personal deficiency judgment foreclosure?

This is when you receive a judgment for a foreclosure because you do not have the money to pay your mortgage. Most foreclosures are a result of this, this is just a more specific term pertaining to this.

Why might a homeowner take out a second mortgage?

A homeowner take out a second mortgage if they are struggling to pay off their first mortgage. You can read more at -

What are the deficiency judgment laws in Pennsylvania?

Deficiency judgments are allowed in Pennsylvania if the mortgage company files a separate lawsuit against the borrowers after the original foreclosure auction. If the mortgagee (usually the foreclosing bank) purchases the property at the auction, the amount of any deficiency judgment is limited by the fair market value of the property.

If you default on a rental property mortgage loan can the mortgage company go after your assets?

That depends on the state, and whether the financing was "non-recourse". The process you want to find out about is known as a "deficiency judgment".

How do you define reverse mortgage?

A reverse mortgage is defined as a type of mortgage in which the homeowner is allowed to borrow money against their house's value. The repayment is not required until the home is sold or the homeowner dies. The house is basically collateral, and has to be sold to pay the mortgage when the homeowner dies.

Is Nevada an anti deficiency state?

Pursuant to Nevada Revised Statutes 40.451, Nevada is a deficiency state, which means that the lender may sue a homeowner after foreclosure for the amount the house sold that was less than what was owed. The homeowner will then have to pay the lender any amount that was due on the loan that was not paid off at sale. For example, if a home was purchased in 2006 for $400,000 and in 2009 it appraises for $300,000, and the homeowner cannot afford the mortgage and allows the lender to foreclose, and at the foreclosure sale the house sells for $200,000, the lender may file a lawsuit against the homeowner (known as a deficiency law suit according to statute). The deficiency law suit must be filed within six (6) months after the foreclosure sale, and the amount of the deficiency judgment is determined by a statutory formula. An appraisal is obtained to determine the actual fair market value on the date of sale. The homeowner is given a credit for the appraised value, or the sales price, whichever is greater. In the above example, even though the house only sold for $200,000, the homeowner is given credit for $300,000, therefore the deficiency judgment (the amount owed to the bank) is $100,000 - the difference between the amount owed and the market value, not the actual sales price.

How does mortgage insurance protect a homeowner?

Mortgage insurance protects a homeowner in one of two ways depending upon what type of insurance it is. Mortgage insurance is one of two types. Mortgage life insurance pays off the mortgage in the event of death. Payment protection covers job loss or disability of homeowner.

What happens after a judgment of foreclosure on a mortgage?

In very broad terms, the judgment creditor can apply to the court for a writ of sale and have the sheriff sell the property at a public auction. The exact time line will vary by state and will depend on whether or not you are entitled to a deficiency judgment. For example, California has two different time lines. If a deficiency judgment is not available or the creditor waives the right to get a deficiency judgment, then the sheriff gives 120 days notice of levy and 20 days notice of sale. if there is the right to have a deficiency judgment, the sale occurs after 30 days but the owner has a 90-day right of redemption.

How can a new homeowner use an endowment mortgage to their advantage?

There are many ways that a homeowner could use an endowment mortgage to their advantage. The biggest advantage is to be able to make less mortgage payments.

How do I know if I have Mortgage insurance?

i have mortgage and homeowner insurance and fidc risk insurance

If house is foreclosed do all liens have to be satisfied before title is cleared?

The liens that predate the foreclosed mortgage must be paid such as a prior mortgage. The 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.

What happens if a homeowner does not make payments on their mortgage?

The bank will start foreclosure proceedings. They will file a complaint against you in court and seek judgment. The house can then be sold in a sale or auction.

If 1st mortgage is forclosed on and 2nd mortgage doesn't get any money can they sue for the balance?

Yes. The mortgage exists as collateral for the second mortgage loan. If the second mortgage loan is not satisfied at the foreclosure sale, the second mortgage lender merely loses the collateral but not the loan and it can sue the now former homeowner for the unpaid balance. This is no different than if there is insufficient money from the sale to pay the first mortgage holder in full. The first mortgage hold can file a lawsuit later to recover the deficiency between the actual loan amount and all credits the homeowner is entitled to receive.

Are you a homeowner if you pay mortgage?

You are, but your mortgage company is on the deed and is also considered an owner of your home.