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what happens to a 2nd mortage after a forclosure

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2011cardona

Joined: 18 Sep 2008
2011cardona's page
Posts: 6

364 Magic Points

Subject: what happens to a 2nd mortage after a forclosure

Tue Sep 22, 2009 9:23 pm

i had my house forclosed on so i am wondering what happens with the second mortgage i had on it?

sunnyca

Joined: 10 Sep 2009
sunnyca's page
Posts: 148

954 Magic Points

Wed Sep 23, 2009 5:16 am

probably based on what they got paid, the rest might go in to collection.

Some stats donto allow lender to collect the deficient amount, but depending on where you live you may need to pay it

Justin

Justin

Joined: 17 Jul 2006
Justin's page
Posts: 1240

28942 Magic Points

Wed Sep 23, 2009 7:39 am

Hi Cardonna,

Well, if you have your home foreclosed, the second mortgage needs to be paid from the left over fund, if there is any. After your home reaches the auction stage, the first lender takes the amount he is supposed to take. The second lender then gets his share from the left over fund. Now, if the second mortgage is not paid in full, then he might file a lawsuit against you. However, this depends on the laws of the different states.
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Justin

sunnyca

Joined: 10 Sep 2009
sunnyca's page
Posts: 148

954 Magic Points

Thu Sep 24, 2009 4:40 am

Also they can also send this to a collection agency and they may come after you for that money

jassica

Joined: 13 Sep 2009
jassica's page
Posts: 76

10 Magic Points

Sun Oct 04, 2009 5:43 pm

If you own a home, it's possible that you have two mortgages--the primary and the secondary. Primary lenders typically trump secondary lenders in receiving funds from a foreclosure sale. However, this doesn't mean the second mortgage holder will fade quietly away. Even after a foreclosure sale, the second mortgage holder has ways to collect on the property sold at auction and force you to repay your defaulted second mortgage balance.

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