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1st Late Payment on Second, how long on Foreclosure?

Posted on: 29th Mar, 2011 01:25 pm
details of our situation:

this is in michigan
first mortgage $88,000
second mortgage $141,000

currently on the market for possible short sale at $170,000

after a rather large loss of income we are current on our first but have just missed the first payment on our second mortgage. don't see how at this point we will be able to keep both payments up. between the 1st / 2nd and taxes our housing is now about 65% of our take home pay.

wondered if anyone might have an idea as to how long the second might go before they start foreclosure procedings on us? and if they do don't they have to pay off the first lein holder before filing? can they convince the 1st mortgage holder to start foreclosure even though we are current with them? we are not sure but they might even be the same as the second was homecomings (gmac) and then is now with specialized loan servicing, which i read somewhere aquired thousands of gmac mortgages when they were in trouble a couple of years back. if both are held by gmac will that make a difference on how the second might handle things?

thank you
Hi randolu,

The second mortgage may not foreclose the property as if they do so, they will be liable for paying off the first mortgage lender in full. They may charge off the loan and sell off the account to a collection agency who will in turn contact you for payments.
Posted on: 29th Mar, 2011 08:44 pm
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