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How is a 2nd mortgage affected by foreclosure

Posted on: 30th Aug, 2009 08:02 am
My son and his wife bought a home and later took out a 2nd mortgage. They lost their home to foreclosure about a year and half ago. They are now living with me and have no other property. They have >100,000 in debts as well as my son lost his construction business. They have received a summons from the 2nd mortgage company asking them to pay 57,000 for the loan, based on the promisary note signed by my son's wife. They never filed bankrupcy as they felt it right to pay off the rest of their debts. They don't have this money. What are their options?
check this out

http://www.mortgagefit.com/foreclosure/secondmtg-sue.html

http://www.mortgagefit.com/second/mtg-chargeoff.html
Posted on: 30th Aug, 2009 06:04 pm
hi cpouliot!

welcome to forums!

the property had been foreclosed by the first lender. as far as the second loan is concerned, the lender has the right to sue your son's wife for it. your son's wife will have to pay off the second mortgage dues to the lender or else he can charge off the amount to a collection agency.

in my opinion, your son's wife should negotiate with the second lender and check out if they can reduce the amount or give her a payment plan to pay off the dues.

feel free to ask if you've further queries.

sussane
Posted on: 30th Aug, 2009 09:01 pm
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