Posted on: 30th Jul, 2007 02:36 pm
we have 2 mortgages. the 1st mortgage (balance $314k) is in arrears by 3 payments under a payment plan arrangement. the second mortgage (balance $78k) is behind by one payment. the 1st mortgage just had an interest increase based on an adjustable arm and the payment will increase by $800.00 each month. this is too much for us to handle. we attempted to refinance but we found out that the value of the home (aprox $350k) is less than the 2 mortgages by aprox $40k. no one will refiance us in this situation. if we go into foreclosure what happens to the two mortgages if a sale occurs and the value is not enough to pay off the mortgages? if they sell the house there may be enough to pay off the 1st mortgage but not the second. will we be responsible on a personal basis to pay off the 2nd mortgage if this occurs. or will it just default and a lien or judgement be accessed against us on a personal basis?
Hi
If you don't pay the money to the collection agency, they can sue you. They can put lien on your other properties, but they can't foreclose on your real estate property or repossess your car.
What type of bankruptcy do want to file? Chapter 7 or 13? Under chapter 7, your assets barring a few exceptions, will be sold to repay your creditors. It'll alsp affect your credit score negatively. On the contrary, a chapter 13 will help you pay off your debts through affordable payment plan under the supervision of the bankruptcy court. This also helps you improve your credit as you pay off your debts through the chapter 13 plan.
If you don't pay the money to the collection agency, they can sue you. They can put lien on your other properties, but they can't foreclose on your real estate property or repossess your car.
What type of bankruptcy do want to file? Chapter 7 or 13? Under chapter 7, your assets barring a few exceptions, will be sold to repay your creditors. It'll alsp affect your credit score negatively. On the contrary, a chapter 13 will help you pay off your debts through affordable payment plan under the supervision of the bankruptcy court. This also helps you improve your credit as you pay off your debts through the chapter 13 plan.
Can a second morgage company forclose on a propery when you are current with your first morgage?
I am in the process of remodifying my first mortgage but in order to keep the home I need to file chapter 7. Can I file chapter 7 on the 2nd mortgage once my 1st mortgage is current.
to phillip,
the second mortgage companies do not generally foreclose on the home, when there's a first mortgage on it. the second mortgage holder has a junior lien on the property, while the first lender holds a first lien. if the property is sold, it's the first lender who gets the money first to satisfy their loan balance. if there remains any excess money after satisfying the first mortgage, it goes towards the payment of second mortgage.
to fab,
i believe you can file chapter 7 bankruptcy on the second mortgage. if you wish to continue making payments towards the first mortgage, you can simply exclude it from bankruptcy. even if you include the first mortgage in bankruptcy, you'll have the option to reaffirm the loan and continue making the payments.
the second mortgage companies do not generally foreclose on the home, when there's a first mortgage on it. the second mortgage holder has a junior lien on the property, while the first lender holds a first lien. if the property is sold, it's the first lender who gets the money first to satisfy their loan balance. if there remains any excess money after satisfying the first mortgage, it goes towards the payment of second mortgage.
to fab,
i believe you can file chapter 7 bankruptcy on the second mortgage. if you wish to continue making payments towards the first mortgage, you can simply exclude it from bankruptcy. even if you include the first mortgage in bankruptcy, you'll have the option to reaffirm the loan and continue making the payments.
to Phillip
the second mortgage can foreclose on your first, if it is current. What will happen, is the jr lien holder will evaluate if there is equity in the property. By requesting payoff from 1st lien holder then order an appraisal to see what the property is worth. in most cases if there is no equity they will not foreclose. But if there is equity in your property then, jr lien holder will pay your first lien off and then start frc proceedings against your property. i hope this is helpful. :!:
the second mortgage can foreclose on your first, if it is current. What will happen, is the jr lien holder will evaluate if there is equity in the property. By requesting payoff from 1st lien holder then order an appraisal to see what the property is worth. in most cases if there is no equity they will not foreclose. But if there is equity in your property then, jr lien holder will pay your first lien off and then start frc proceedings against your property. i hope this is helpful. :!:
I have 1st & 2nd mortgage with same bank who service the loans not sure if same lender for both. loam 78,000 total 62,000 1st 16,000 on 2nd, 7 month behind , house is up for short sale, have offer 20,000 pending, bank call me about 2nd mortgage is not going to forecloser they want some money while short sale is pending, and 2nd is in loss dept may go to collector or sold to collector.I have walked away from house 3 months ago now renting. I have not recieved anything from a collection co. etc. how much time do you think i have before this happens and what should I expect to happen?
Hi clif,
If there is not much of equity in the property, it is likely that the second mortgage holder will not foreclose on the property. The lender can charge off the debt and sell it to a collection agency. It depends on your individual lender when he sends the debt to collections. Once the debt is sold off, the collection agency will come after you to recover the loan amount. But you can negotiate with them and settle the debt for a lesser amount or you can set up a repayment plan with them to pay off the debt over a certain period of time.
If there is not much of equity in the property, it is likely that the second mortgage holder will not foreclose on the property. The lender can charge off the debt and sell it to a collection agency. It depends on your individual lender when he sends the debt to collections. Once the debt is sold off, the collection agency will come after you to recover the loan amount. But you can negotiate with them and settle the debt for a lesser amount or you can set up a repayment plan with them to pay off the debt over a certain period of time.
If I declare chapter 13 to protect my home, are the past due property taxes included in it? Or can someone pay the taxes and still take my home? Thanks
Hi Akles,
As far as I know, back taxes cannot be discharged though you file bankruptcy. You will have to pay off the back taxes in full. After the bankruptcy, if you're selling the property to someone else, then he can clear the back taxes on the property and purchase it.
Thanks,
Jerry
As far as I know, back taxes cannot be discharged though you file bankruptcy. You will have to pay off the back taxes in full. After the bankruptcy, if you're selling the property to someone else, then he can clear the back taxes on the property and purchase it.
Thanks,
Jerry
If the company gets a summary judgement, do I have a chance at paying off the loan before it goes to public sale?
Hi Derrick!
Welcome to forums!
Your query has been replied to in the given page:
http://www.mortgagefit.com/foreclosure/judgment-payloan.html
Take a look at it. Hope it helps you.
Sussane
Welcome to forums!
Your query has been replied to in the given page:
http://www.mortgagefit.com/foreclosure/judgment-payloan.html
Take a look at it. Hope it helps you.
Sussane
I received a letter from a lawyer saying that a judgement has been sent to the court for my second mortgage for 100,000 but i do not have money to pay this, what can i do, should i file for bankruptcy i have been trying to work something out with the bank about a modification and it has been a year and they have not been able to help me at all.
thanks.
thanks.
Welcome monica,
You can file bankruptcy and stop all actions against you. This will help you in stopping the judgment. In the bankruptcy filing, you can get the loan discharged. Thus, you won't remain personally liable for paying off the mortgage.
You can file bankruptcy and stop all actions against you. This will help you in stopping the judgment. In the bankruptcy filing, you can get the loan discharged. Thus, you won't remain personally liable for paying off the mortgage.
i recieved a judgement today,foreclosure on 2nd mortage,total is 48000,i,m current on ist,should i file for bankruptcy on 2nd,can i still stay in home
Hi yummer!
Welcome to forums!
You cannot file bankruptcy on the second mortgage only. You'll have to include all your debts in the bankruptcy filing. You will be able to save the property though you file bankruptcy.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You cannot file bankruptcy on the second mortgage only. You'll have to include all your debts in the bankruptcy filing. You will be able to save the property though you file bankruptcy.
Feel free to ask if you've further queries.
Sussane
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