Posted on: 14th Nov, 2010 06:53 pm
I was wondering how a 2nd mortgage works? My mother got a 2nd mortgage on her house. She recently sold her house, which paid off the first mortgage but says the 2nd mortgage is not paid off. Is there any reason why it wasn't paid off with the sale of the house? I always thought that when you sell the house the mortgages were to be paid off. Can you still make payments on a 2nd mortgage if you dont own the property and if you can for how long are you allowed to do so?
hi tinkerbear,
the sale proceeds were not enough to pay off the second mortgage lender. as a result, it only satisfied the dues of the first mortgage lender but not that of the second. your mother should pay off the second mortgage in full or else the lender can charge off the mortgage and sell off the account to a collection agency.
thanks
the sale proceeds were not enough to pay off the second mortgage lender. as a result, it only satisfied the dues of the first mortgage lender but not that of the second. your mother should pay off the second mortgage in full or else the lender can charge off the mortgage and sell off the account to a collection agency.
thanks
James,
The sale of the hosue was 89k and her 1st mortgage was 53k, the 2nd was 19k. Which would still leave her money in her pocket. I just dont want to see her get into trouble as my father just passed and she is not in the right state of mind and I'm not sure how this works. Currently she has all of the extra money minus the 1st mortgage. Shouldn't the 2nd have to been paid off as well? With the bank knowing she sold the house can they take her to court and demand the money on the spot? I'm just not sure why she is still allowed make payments on the 2nd mortgage if she no longer has the collateral. Thank you!
The sale of the hosue was 89k and her 1st mortgage was 53k, the 2nd was 19k. Which would still leave her money in her pocket. I just dont want to see her get into trouble as my father just passed and she is not in the right state of mind and I'm not sure how this works. Currently she has all of the extra money minus the 1st mortgage. Shouldn't the 2nd have to been paid off as well? With the bank knowing she sold the house can they take her to court and demand the money on the spot? I'm just not sure why she is still allowed make payments on the 2nd mortgage if she no longer has the collateral. Thank you!
You can ask your mother to pay off the second mortgage with the amount of money she has now. This will help her in getting rid of the loan. If she does not pay off the dues, then the bank can sue her in the court.