Posted on: 19th Oct, 2010 10:31 am
Hi
We have 3 mortgages on our property. The first 2 are from the same lender and the third from a different lender. Due to unemployment and underemployment we have been unable to make any payments and have moved out of the property. We have been asking for modifications to no avail. Now the third lender wants to foreclose. How would this work? Mortg # 1 is 181k, # 2 is 32K and #3 is 16K. What will happen to the first 2 liens if foreclosure goes through?
Thanks :D
We have 3 mortgages on our property. The first 2 are from the same lender and the third from a different lender. Due to unemployment and underemployment we have been unable to make any payments and have moved out of the property. We have been asking for modifications to no avail. Now the third lender wants to foreclose. How would this work? Mortg # 1 is 181k, # 2 is 32K and #3 is 16K. What will happen to the first 2 liens if foreclosure goes through?
Thanks :D
the following is a message from lender to another.
""you can foreclose due to nonpayment of your second mortgage, but, only do that if there is enough equity in the property to pay off the first mortgage and have some left over to pay some or all of your second mortgage.
if there is not enough equity in the property to pay off the first mortgage and then pay some or all of your expense and mortgage, do not do it. you would be spending money to foreclose and you would not get anything back after pay off of the first mortgage."
in your case the third lender will have to make sure there is enough equity to cover 1st and 2nd mortgage and to cover his expenses and part of his mortgage, since house pricing is down all over the country and below purchasing price, i assume yours is too.
if you can try to buy it from them for pennies on the dollar exa, $0.10 and above they sale it like that to collection agencies make them and offer who know maybe they'll go for it, if you can of course.
i hope that helps you.
""you can foreclose due to nonpayment of your second mortgage, but, only do that if there is enough equity in the property to pay off the first mortgage and have some left over to pay some or all of your second mortgage.
if there is not enough equity in the property to pay off the first mortgage and then pay some or all of your expense and mortgage, do not do it. you would be spending money to foreclose and you would not get anything back after pay off of the first mortgage."
in your case the third lender will have to make sure there is enough equity to cover 1st and 2nd mortgage and to cover his expenses and part of his mortgage, since house pricing is down all over the country and below purchasing price, i assume yours is too.
if you can try to buy it from them for pennies on the dollar exa, $0.10 and above they sale it like that to collection agencies make them and offer who know maybe they'll go for it, if you can of course.
i hope that helps you.
If I was you, I would have stay in the house until the last day, save my self some money, and try to work it out with the lenders until the end.