What happens to an second mortgage or equity loan when a homebuyer runs into trouble paying the first loan and
Wednesday, 1. September 2010
the bank has to foreclose?
Easy Home Equity Loan
Home Equity Loan Information
Wednesday, 1. September 2010
the bank has to foreclose?
Beverly S Says:
The first mortgage holder will have notified the 2nd. The 2nd mortgage company decides whether to bid/buy the home from the 1st to save their interest. If they do that then they own both loans, since they have paid off the 1st. Then 2nd will sell house as a foreclosure & get whatever they can for it. In most cases the 2nd mortgage company loses out since foreclosures sell for less than balances many times.
Mrs HarleyBrat Says:
the first lender will notify the 2nd loan – TRY to get a local REALTOR who specializes in short sales to help you out. Will save your credit just bit.
hatsplas from csbcglobal.net Says:
The second mortgage or junior lien has its security interest in your home wiped out. They can still sue you for the money owed, get a judgment against you.