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what are the consequences on paying first mort.on time every

Posted on: 18th Nov, 2007 08:19 am
first mortgage is through taylor bean and the second mrtgage through gmac mort... if i continued paying my first mortgage on time and stopped paying my second mortgage,what would be the course of action against me??could they force me out even though im satisfying taylor bean mort???? thank you
yep. they will foreclose on your home for the 2nd mortgage....happens all the time with HELOCs
Posted on: 18th Nov, 2007 10:56 am
Hello Mlange,

The second mortgage is also a secured debt where you have kept your home as the collateral.

So, if you default in making payments to your second lender, he has all the rights to foreclose on your property.

Since the first mortgage lender holds the primary lien on your property, the second lender has to buy out the first in order to get a clear title.
Posted on: 19th Nov, 2007 12:00 am
hi mlange,

i agree with the above posters. if you do not pay the second mortgage, the lender will foreclose as the house is the collateral of the second mortgage. you can refinance or pay the second mortgage in full. or you can talk to the lender and find out what are the options available for you. if you do not take any steps your lender may foreclose the house.

thanks,
larry
Posted on: 19th Nov, 2007 12:52 am
The lender will only foreclose if they think they can get their money back. Since they hold 2nd lien it means they will have to pay 1st lien in full, pay for the lawyers, and get a low price for your home since theyare selling on the auction. The only way they are getting their money back if you have 20%+ equity in your house. So even though they have the legal right to do this they arent likely to foreclose on your house as long as you paying your 1st.
However your credit wil be ruined and you will get alot of mail and phonecalls from them.
Posted on: 19th Nov, 2007 08:10 am
Call your second mortgage lender for a work out solution to get back on track. Most lenders offer something since they really dont want to foreclose especially if they are in second lien position.
Posted on: 05th Jan, 2008 07:36 pm
I agree with Irene.
Posted on: 21st Jan, 2008 11:26 pm
what is the meaning of shortsale when seeling a house? does it damage credit?
Posted on: 02nd Jun, 2008 10:12 am
Posted on: 03rd Jun, 2008 12:34 am
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