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The 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.
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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.
What else can I help you with?
If the holder of second trust deed forecloses first does it have to pay off the full amount owed to the first trust deed?
If the holder of the second mortgage, or deed of trust, forecloses, that lender takes the property subject to the first mortgage or deed of trust.
If the second mortgage foreclose who pays the first loan?
If the second mortgagee forecloses and takes possession of the property it must pay the first mortgage or if they sell to a third party that party takes the property subject to the first mortgage.
What happens to the second mortgage if the first mortgage is paid off?
you then only have to pay the second
What happens to the second mortgage when the first mortgage forecloses on the property and will the second mortgage go after the holder or will they show the balance owed as earned income?
Depends on the state. In many states the holder of the second mortgage can come after you for the balance due. If the second is from the same company that holds the first that may not be as likely. It really depends on your state and whether the lending institution has the right to pursue you for the balance between what they eventually sell the house for and what you owed. Check to see if your state is a deficiency state and then talk to an attorney.
If you foreclose on your home and proceeds are not enough to pay the first and second mortgage what happens to the second mortgage lien?
You still owe the money to the mortgage provider.
If the holder of second trust deed forecloses first does it have to pay off the full amount owed to the first trust deed?
If the holder of the second mortgage, or deed of trust, forecloses, that lender takes the property subject to the first mortgage or deed of trust.
If the second mortgage foreclose who pays the first loan?
If the second mortgagee forecloses and takes possession of the property it must pay the first mortgage or if they sell to a third party that party takes the property subject to the first mortgage.
What happens to the second mortgage if the first mortgage is sold?
Nothing happens to it. It still remains in second place.
What happens to the second mortgage if the first mortgage is paid off?
you then only have to pay the second
What happens to the second mortgage when the first mortgage forecloses on the property and will the second mortgage go after the holder or will they show the balance owed as earned income?
Depends on the state. In many states the holder of the second mortgage can come after you for the balance due. If the second is from the same company that holds the first that may not be as likely. It really depends on your state and whether the lending institution has the right to pursue you for the balance between what they eventually sell the house for and what you owed. Check to see if your state is a deficiency state and then talk to an attorney.
If you foreclose on your home and proceeds are not enough to pay the first and second mortgage what happens to the second mortgage lien?
You still owe the money to the mortgage provider.
Can a second mortgage holder foreclose on a first bank mortgage holder?
yes, but it rarely happens.
If you have a second mortgage but your first mortgage was foreclosed on do you still have to pay back the second or would it be rolled into the first mortgage?
Once the primary mortgage forecloses and the property is sold at auction, the 2nd mortgage becomes just another unsecured debt. If the 2nd lender received no funds from the sale of the property, then you ARE liable for the full balance of the 2nd mortgage - plus interest when it goes delinquent. Use care, this will differ depending on the state, but it's not uncommon for the 2nd mortgage note holder to use any means necessary to get back their loan amount, including foreclosure. Often a second mortgage note holder will attempt to purchase the primary note. One potential issue can play out as follows: * A homeowner finds themselves in financial trouble. * They successfully negotiate a payment plan with their primary lender, but remain in default against their second mortgage loan. * The second lien holder then purchases the primary mortgage (which is still in good standing) and forecloses. * Homeowner finds themselves losing their home to the 2nd mortgage lender.
What happens to the first mortgage if the second mortgage is in foreclosure?
nothing...it remains a lien on the property and a debt which is assumed by the successful bidder at the auction of the 2nd mortgage
What happens if you default only on your home equity line but not your first mortgage?
The second mortgagee can foreclose and take possession of your property subject to the first mortgage.
Can a first mortgage foreclose with a second?
Yes. The second is subordinate to the first mortgage and therefore is at greater risk. If equity exists, the 2nd mortgage holder may receive payment for the debt when a senior lender forecloses. If there is not, then their lien on the property is wiped out and they must pursue the borrower in another fashion (such as a lawsuit). If the 2nd mortgage lender does not want the 1st lender to foreclose, they may choose to pay the 1st mortgage current before the foreclosure proceeds and attempt to collect or foreclose themselves.
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.
