Posted on: 21st Jun, 2008 12:50 pm
i filed a ch 7 three years ago and reaffirmed my 1st which is current at this time.
my bk attorney assured me that he had "never" seen a 2nd mortgage foreclose.
well, they just did!
the question is this: if a relative buys out the 1st mortgage and refuses to sell,
where does that leave the second mortgage?
can they get a court order forcing the first mortgage to sell to them?
does that leave the 2nd mortgage in a poor enough position than i can make a cheap
offer and get a mortgage release certificate out of them?
there is presently enough equity to cover both mortgages at sale.
anyone ever hear of this being tried? could it work?
do you know of someone who could give me a definitive answer whom i could contact?
i eagerly await your comments. tia
my bk attorney assured me that he had "never" seen a 2nd mortgage foreclose.
well, they just did!
the question is this: if a relative buys out the 1st mortgage and refuses to sell,
where does that leave the second mortgage?
can they get a court order forcing the first mortgage to sell to them?
does that leave the 2nd mortgage in a poor enough position than i can make a cheap
offer and get a mortgage release certificate out of them?
there is presently enough equity to cover both mortgages at sale.
anyone ever hear of this being tried? could it work?
do you know of someone who could give me a definitive answer whom i could contact?
i eagerly await your comments. tia
I would seekout legal advise ASAP. As far as I know the second can proceed without the firsts permission. I am no expert on foreclosure and work more at helping people avoid them but I wouldnt expect the first to have to cooperate for the second to be able to do anything... I will be curious to see what others say.
Good Luck
Brian
Good Luck
Brian
Hi Guest.
Welcome to the forum.
The second mortgage lender can also foreclose if you default because second mortgage is also a secured loan backed by the property. But in case of foreclosure the first mortgage lender will get the amount first. After paying off the first mortgage lender, the second lender will get his/her amount. That is why second lender doesn't generally foreclose.
So the first mortgage lender can buy the second mortgage. In that case you will have to pay both the mortgage payments to the first mortgage.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
The second mortgage lender can also foreclose if you default because second mortgage is also a secured loan backed by the property. But in case of foreclosure the first mortgage lender will get the amount first. After paying off the first mortgage lender, the second lender will get his/her amount. That is why second lender doesn't generally foreclose.
So the first mortgage lender can buy the second mortgage. In that case you will have to pay both the mortgage payments to the first mortgage.
Feel free to ask if you have any further questions.
Best of luck,
Larry
