Posted on: 19th Mar, 2010 08:07 am
From my research, I understand that banks are simply not pursuing judicial foreclosure even on recourse loans (non-purchase money). That is good news as that means my 1st Mtg would be cleared when the Bank takes it and I am off the hook for deficiency.
However... I do have a 2nd Mtg and my research is telling me that the 2nd mortgagee will be unable to make a claim on that property and as a result can pursue you personally for the balance. Can anyone confirm this?
However... I do have a 2nd Mtg and my research is telling me that the 2nd mortgagee will be unable to make a claim on that property and as a result can pursue you personally for the balance. Can anyone confirm this?
Welcome Steve,
It is true that the second lender will have the rights to sue you for the debts though your property has been foreclosed upon by the first lender. If you are unable to pay off the dues, then he can either send it to collections or garnish your wages.
It is true that the second lender will have the rights to sue you for the debts though your property has been foreclosed upon by the first lender. If you are unable to pay off the dues, then he can either send it to collections or garnish your wages.