what happens to a 2nd mortage after a forclosure

Submitted by 2011cardona on Tue, 09/22/2009 - 21:23

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

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

Wed, 09/23/2009 - 05:16 Permalink

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.

Wed, 09/23/2009 - 07:39 Permalink

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

Thu, 09/24/2009 - 04:40 Permalink

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.

Sun, 10/04/2009 - 17:43 Permalink