If i go into foreclosure would my second mortgage still come after me?
Monday, 6. September 2010
The 2nd is with WAMU. I am getting conflicting info from various parties, from lenders to attorneys to friends and need a way to find out for sure. Thanks.
Bobbi Says:
Been there – done that!
Where you are located does impact this answer so I will be general. First, if you go into foreclosure I assume that means that there is no equity left in your house correct? If that is the case, you then need to read your loan documents (not fun but necessary). For the first lender, you need to see if they will foreclose with the second there or can you possibly give them the property?
For the second lender – you need to see what your guarantee says? That will give you some information. Also, ask them to show you your signed deed of trust and promissory note, they’ve been having issues with that lately. If you have a lot of available assets, it is likely that the second will try to get something from you. If you don’t (and with the current climate) you might be ok. But never agree to anything until it’s in writing and sign NOTHING without having an attorney say you are ok. It’s worth spending that money!
WAMU is EXTREMELY difficult to deal with. The right hand doesn’t know what the left one is doing. And they take forever to do anything and lose documentation all the time. I sent the same things in 4 times before they acknowledged they had received them. If you haven’t called them look on the back of your statement and give them a call. At least see what they have to say on your situation.
This was very general – but I hope that it helped.
Lisa S Says:
You need specific information here—and since you might be in another state, that’s hard to answer.
Good luck!
Salty but Sweet Says:
They can come after you for the deficency once the home is sold. Unless you personally guaranteed the loan (through recourse) the bank’s lein is on the collateral (the home) not you personally. They might make some noise, but in the end bankruptcy would get rid of them if it came down to it.