Posted on: 20th Jan, 2009 06:37 pm
if your 1st mortgate is current, but you have defaulted on your 2nd mortgate, what can happen? can the 2nd mortgage foreclose? if so, how?
recently, we hired an agent to attempt to modify our 2nd mortgate --- only after finding out that our second mortgage was lying to us for the past 3 months about being in modification review. his idea was to stop paying the 2nd mortgate and keep the 1st mortgage current. he then goes to the lender (not the servicer) and deals directly with them using our 1st mortgage at leverage toward modifying the 2nd.
recently, we hired an agent to attempt to modify our 2nd mortgate --- only after finding out that our second mortgage was lying to us for the past 3 months about being in modification review. his idea was to stop paying the 2nd mortgate and keep the 1st mortgage current. he then goes to the lender (not the servicer) and deals directly with them using our 1st mortgage at leverage toward modifying the 2nd.
Hi shespy!
Welcome to forums!
If you have defaulted on the second mortgage, then the second mortgage company has all the right to foreclose upon the property. However, in order to foreclose upon the property, the second lender will have to satisfy the first lender's loan.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If you have defaulted on the second mortgage, then the second mortgage company has all the right to foreclose upon the property. However, in order to foreclose upon the property, the second lender will have to satisfy the first lender's loan.
Feel free to ask if you have further queries.
Sussane
you hired an agent? and you have paid this agent already? i pray not.
"agents" "working on your behalf" -- this is one of the biggest scams out there these days. defaulting on your second mortgage was whose idea? your agent's? i suspect so.
you need to hire attorneys, not agents, when you want to negotiate with a bank. i agree that it's useful to have someone on your side in speaking with your second mortgagee, but it sounds so far like your "agent" has done not much of anything to actually assist you.
keep in mind that the federal trade commission (FTC) has begun taking action against such companies, who've been ripping unfortunate borrowers off.
"agents" "working on your behalf" -- this is one of the biggest scams out there these days. defaulting on your second mortgage was whose idea? your agent's? i suspect so.
you need to hire attorneys, not agents, when you want to negotiate with a bank. i agree that it's useful to have someone on your side in speaking with your second mortgagee, but it sounds so far like your "agent" has done not much of anything to actually assist you.
keep in mind that the federal trade commission (FTC) has begun taking action against such companies, who've been ripping unfortunate borrowers off.
I am meeting with an attorney who says he can negotiatate a pay off on my second at a lower pay off. He says that banks are dealing with people facing foreclosure by settling for 5-15% of the total owed on the second, as long as I can come up with the cash to pay the bank. For example, my second is for $110,000 and he feels I can settle with the bank for approximately $15-20,000.This sounds a little sketchy, What do you think?
i don't disagree with you that it sounds odd, roger. however, as long as you can have this guy negotiate for you without having to come up with some exorbitant amount of money for his services, he may be right. certainly, there are second mortgagees who are willing to settle for less.
however, i'll say this, too: unless i could determine that my loan was in jeopardy of not being paid (i mean speaking as the second mortgage lender), i'd hesitate to negotiate with a borrower or his attorney. i suspect lenders will be holding out until the bitter end before capitulating.
however, i'll say this, too: unless i could determine that my loan was in jeopardy of not being paid (i mean speaking as the second mortgage lender), i'd hesitate to negotiate with a borrower or his attorney. i suspect lenders will be holding out until the bitter end before capitulating.
I agree with George and one other point...
If your two loans combined are still below the market value of the home, then why would a bank reduce your liability to much less than market value? They could easily foreclose and get more for the home.
If your two loans combined are still below the market value of the home, then why would a bank reduce your liability to much less than market value? They could easily foreclose and get more for the home.
My first mortgage is 249,000. The 2nd mortgage is 124,000. The 1st is current, the 2nd is in default. The home is only, if lucky, worth approximately 200,000. What do you think will happen if we continue to keep our 1st current?
Hi shespy!
Your query has been answered in the given link:
http://www.mortgagefit.com/second/debt-collectors.html
I hope it will help you.
Sussane
Your query has been answered in the given link:
http://www.mortgagefit.com/second/debt-collectors.html
I hope it will help you.
Sussane
my home is worth 289000.00 now. I owe 359000.00 on the first mtg and 95000.00 on a 2nd mtg. The first mtg is trying to restructure to get me lower payments, they have been working on this since Sept 2009. Now the 2nd mtg is threatening to forclose and garnish my wages. I have not made any payments on either loan since Sept 2009. The second mtg said I had to make my account current to prevent them from forclosing, and once I did that, they would consider restructuring my Jumbo loan with them. I borrowed the money to bring the 2nd mtg current, now they say they can't do anything for me until the 1st mortgage helps me first. Am I in a negotiating situation with either mortgage?? If so how do I negotiate? I want to keep my home, but due to economy, my income and just living expenses have made it impossibe to pay at the current monthly payments. I asked the 1st mortgage to move my payments over a 40 year period rather than the 30. I just don't know what to do at this point of what to expect from either mortgage when is comes to negotiation.
You should contact your first lender and request them to modify your loan. While modifying your loan, the lender would lower your interest rate and increase your term of loan payment in order to recover the dues. Once he does so, you should start negotiating with your second lender in order to get a better payment plan.