Posted on: 16th Dec, 2008 08:26 pm
what happens to a 2nd mortgage if the house goes into foreclosure?
hi diohabla!
as far as i know,
when a property with first and second mortgages foreclose, the first lender will get his dues first. as far as the second mortgage lender is concerned, he can file a deficiency judgment and try to recover the debts from the borrower.
feel free to ask if you have further queries.
sussane
as far as i know,
when a property with first and second mortgages foreclose, the first lender will get his dues first. as far as the second mortgage lender is concerned, he can file a deficiency judgment and try to recover the debts from the borrower.
feel free to ask if you have further queries.
sussane
Hi diohabla,
The second mortgage lender can also charge off the mortgage to a collection agency. Second mortgage charge off does not mean that the mortgage payments have been forgiven. It only means that you will have to pay the second mortgage dues to the collection agency rather than the lender.
To know if a second mortgage company can sue you or not after foreclosure, check out a forum discussion in the given page:
http://www.mortgagefit.com/foreclosure/secondmtg-sue.html
Thanks
The second mortgage lender can also charge off the mortgage to a collection agency. Second mortgage charge off does not mean that the mortgage payments have been forgiven. It only means that you will have to pay the second mortgage dues to the collection agency rather than the lender.
To know if a second mortgage company can sue you or not after foreclosure, check out a forum discussion in the given page:
http://www.mortgagefit.com/foreclosure/secondmtg-sue.html
Thanks