What happens to a second mortgage after foreclosure?

The borrower is liable to pay off the second mortgage to the lender if it's not satisfied from the foreclosure sale. The second lender has the rights to sue the borrower for the loan.

Our second was a home equity line which essentially is like having a credit card attached to the value of your house. Through foreclosure your 1st mortgage gets settled however your second can follow you. We filed ch 7 for this reason.

if you make payment arrangement on the 2nd mortgage after foreclosure, can you get a new home loan

Hi MrBaltimore,

Immediately after a foreclosure, you won't be able to get a new loan. You need to wait for 3-4 years after a foreclosure in order to get a mortgage.

Thanks

if the second mortgage is following me after foreclosure, should i make a settlement fault with they? they asked me that?

Hi zulma,

After a foreclosure sale, you'll be liable for paying off the mortgage dues of the second lender. You should contact your second lender and try to negotiate for a settlement with them. If the lender agrees to settle the dues with you, then you will be able to get rid of the dues in an easier manner.

Thanks