Posted on: 05th Mar, 2011 08:41 am
hi i have a question regarding our second mortgage, our first mortgage is current, we owe about $106000, house value is maybe between $65000 to $70000 not really sure, balance owed on second is $40000 but this is with another bank, this is home equity loan and it is 4 months past due, can a bank for second mortgage still to try to pursue a foreclosure? even though they do not have a title to the first one? combined balance for both mortgages is about $146000, we were told that only a bank that holds title to the property can foreclosure but that loan is current thank you
Hi hgazdrk,
The second mortgage lender legally has the rights to foreclose the property if it doesn't get it's dues on time. However, if the second mortgage lender does so, then he will have to satisfy the dues of the first mortgage lender before satisfying his own dues. In most cases, the second mortgage lender charges off the loan and assigns it to a collection agency.
Take care.
The second mortgage lender legally has the rights to foreclose the property if it doesn't get it's dues on time. However, if the second mortgage lender does so, then he will have to satisfy the dues of the first mortgage lender before satisfying his own dues. In most cases, the second mortgage lender charges off the loan and assigns it to a collection agency.
Take care.