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mortgage foreclosure

Posted on: 02nd Dec, 2010 04:46 pm
thankyou for giving us this opportunity.
I have two morgages rental houses,which the first one is nearly under foreclosure, the second one is still okay but I am out of job and I have defaulted to pay for three months, which my lenders are requesting me to do something. I just asked them to take it for I do not have the money to pay.

Now my question will the first mortgage lenders after forclosure claim for my second one?to settle the deficiency that will be known after the foreclosure ?

What can I do to extend the time of the foreclosure which remains less than 20 days?
welcome fisay,

if the second mortgage lender forecloses the property, then he will have to pay off the dues of the first mortgage lender prior to satisfying his own dues. you can try to negotiate with your second lender so that he extends the time period to pay off the dues.
Posted on: 02nd Dec, 2010 08:07 pm
If you are foreclosed by either the first mortgage holder or second mortgage holder and the property sells for less than what you owe, you could still by liable for the difference, however, there have been new laws that have passed that may apply to you. The Mortgage Debt forgiveness act can be found on the IRS website, also in California starting in January 2011 a non deficiency law has been passed. It is called SB931 you can google this and you can find more information about this new law.
Posted on: 13th Dec, 2010 02:55 pm
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