Posted on: 26th Mar, 2009 12:53 pm
Hi,
We are losing our home due to our business failing in this tough economy. We have a 1st and a 2nd on the property and the lender for the 2nd is telling me that they are going to charge off the loan and will be able to put new locks on the house so we would be locked out.
The 1st lender has not foreclosed on the home yet and we have not received any written paperwork from either company that foreclosure is imminent only a phone call from the 2nd lender threatening us with the charge off etc.
Can the 2nd lender lock us out of our home? Can he do this without written notice and a date to vacate? He said that they would charge off the loan and file a 1099 on us and change our locks without warning.
We are going to file bankruptcy as we don't have adequate income at this time to save the home. Please help... We live in Washington State and need some answers so we can stop stressing.
Thank you.
Susan
We are losing our home due to our business failing in this tough economy. We have a 1st and a 2nd on the property and the lender for the 2nd is telling me that they are going to charge off the loan and will be able to put new locks on the house so we would be locked out.
The 1st lender has not foreclosed on the home yet and we have not received any written paperwork from either company that foreclosure is imminent only a phone call from the 2nd lender threatening us with the charge off etc.
Can the 2nd lender lock us out of our home? Can he do this without written notice and a date to vacate? He said that they would charge off the loan and file a 1099 on us and change our locks without warning.
We are going to file bankruptcy as we don't have adequate income at this time to save the home. Please help... We live in Washington State and need some answers so we can stop stressing.
Thank you.
Susan
If they are threating you over the phone and have not taken any legal action as to sending you certifid notices, then they are probably talking a bunch of smack.
It is strange if the 1st lien holder has not taken any action. They are in first lien position and they have the upper hand.
It is strange if the 1st lien holder has not taken any action. They are in first lien position and they have the upper hand.
Its called a scare tactic. They are scaring you into paying. They MAY come and actually do something, but you need it in writing. Also, it doesn't make sense for 2nds to usually do anything and the reason being, is 1st lien position will ALWAYS get any money before the 2nd lien will. So for the 2nd lien to come after you is foolish b/c they will be spending their money on something they possibly won't see any income out of.
Thank you for your replies... I'll sleep better now.