Home sold due to foreclosure - Am I liable for second loan?

hi felicia,

though the first lender has foreclosed your property, you would still be liable for the second mortgage. you will have to pay off the second mortgage dues. you can contact your second mortgage lender and negotiate for a payment plan so that it becomes affordable for you to pay off the loan.

Hi, I have recentlly went through a divorce and my ex-spouse is not willing to work whit me in any way. I hae a house loan of 250k and I could'nt continue to make the payments, they won't agree to a short sell or anything to help get the house sold. I have'nt made a payment in 4months,and my loan was sold,but I have'nt heard from new lender,what are my options?? Loan was sold to Freedie Mac?

Your query has been answered in the given page:
http://www.mortgagefit.com/inprocess/about32996.html#143560

Have a look at it. I hope it'll help you.

The seller accepted our offer, but put a condition of settling a 2nd T.D. (assume that means Trust Deed) of $30k. Is that normal? What should I be concerned about or ask about? I'm inclined to just counter the counter with a NO on that condition. What do you think?

Hi Helen,

If the seller had a second loan, then it is the seller's responsibility to pay off the second loan. You are not liable to pay that money to the seller. I would suggest you to check out other short sale properties in the same locality and try to buy one of them.

Take care.

I bought a shriff sale auction house due to the judgement of 1st mortgage in Jul 2008, I sent email requested country treasurer, please let me know if there is any lien which I'm responsible for against this property as a new owner. Country treasurer responded back stating 2 utility unpaid liens...I paid them off. Now I see there is a Tax sale liens against the property before I bought it. I stop by treasurer office..they are saying, in county property tax bill, there is tax-sale certificate number mentioned always. You r responsible for this or Tax-sale certificate buyer will request for a deed. Can I sue county for misleading or not giving nough info?
2nd there is 2nd mortgage against this property by last ownder...am I responsible for that mortgage pay off at all? Thanks for help!

hi kumar,

you can consult an attorney and he would give you the right opinion whether or not you would be able to sue the county for misleading you. the second mortgage holder still has a lien on the property. you can contact the previous owner and ask him to clear off the dues. rather, it would have been better if you would have asked the owner to pay off the dues before purchasing the property. if the previous owner does not clear the dues, then you could be held responsible for it.

Last owner of my property scammed many people and got into prison by federal govt. It seems either he played save game using good friend and took loan(home equity) from bank and then record his first loan from friend in the country. So I see, Recorder office recording of big loan and first loan has later date and Bank loan is first. As he was going to loose his whole property and all because of scamming many people. So his friend might had helped putting a show-up mortgage loan($86,500 with 10% interest) and got judgement against that mortgage so country auction it out for $102,000 and 2nd mortgage lender(bank) were not involved and never came to bid even. Now I own this place and trying to understand and get a clean title and found...Bank loan has grown to double and they are on the way to foreclose the house. I've never been contacted by Bank so far. Please advise me safe and better way to proceed in this.

If my house goes to auction due to foreclosure and the sale is for less than the amount owed on my home, am I liable for the outstanding amount?

Hi Kumar,

If there is a lien on the property and if that is not fulfilled, then the creditors have the rights to foreclose the property. I would suggest you to speak to an attorney and discuss your case in details. He will be the best person to guide you in this regard.

Take care

I know I am probably going to have to talk to a RE attorney, but am trying to avoid that cost if possible. I live in AZ where they can not go after you for the foreclosure or for the difference in covering a short sale vs. what you owe.

I owe about 96k on my first, and 6K on my second. If I default on my first, but continue to remain current on my second **and** plan on remaining current on my 2nd, even after foreclosure - what happens? Will my 2nd lender continue to work with me accepting my payments on the loan without taking legal action? Or would I be liable to have to pay it all back immediately?

Hi Rachelle!

Welcome to forums!

The second lender will always want you to clear off the dues that you own on your second mortgage. If you keep on making the payments on time, then the lender won't take any legal actions against you.

Feel free to ask if you've further queries.

Sussane

My mother is trying to get a loan modification. My name is on the deed, but not the mortgage. If the company forecloses on the property, how will this affect me? Will I be able to buy a home?

Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about41995.html#176073

Take a look at it. Hope it helps you.

No. Responsibility for the loan deficiency will remain with the original debtor .