Posted on: 23rd Oct, 2008 07:43 pm
The primary mortgage is with one lender and then there is a smaller portion with another lender ($118,000 - 1st lender & $22,000 - 2nd lender).
hi ruthd!
if the first mortgage is going for a deed in lieu foreclosure, then the first mortgage company will accept the property with a second mortgage lien on it. most of the time deed-lieu foreclosures are not accepted by the first mortgage company if there is a second mortgage on it. if it accepts, then the first mortgage company includes a non-merger clause into the deed-in-lieu agreement. this prevents the junior lien holders to take any legal action against the first lender.
you may also visit the following link to find a discussion on a similar topic and check what the experts have to say:
http://www.mortgagefit.com/predeal/deedinlieu-juniorlien.html
thanks.
if the first mortgage is going for a deed in lieu foreclosure, then the first mortgage company will accept the property with a second mortgage lien on it. most of the time deed-lieu foreclosures are not accepted by the first mortgage company if there is a second mortgage on it. if it accepts, then the first mortgage company includes a non-merger clause into the deed-in-lieu agreement. this prevents the junior lien holders to take any legal action against the first lender.
you may also visit the following link to find a discussion on a similar topic and check what the experts have to say:
http://www.mortgagefit.com/predeal/deedinlieu-juniorlien.html
thanks.
Hi ruthd,
As far as I know, first mortgage lender will never accept a property in deed in lieu which has a second mortgage. In case if the lender accepts it, there will be a non-merger clause in it. (James Hogg is right).
Thanks.
As far as I know, first mortgage lender will never accept a property in deed in lieu which has a second mortgage. In case if the lender accepts it, there will be a non-merger clause in it. (James Hogg is right).
Thanks.