Any hope for junior lein holders when buyer defaults?
Help! We sold our home in AZ in 2006 for $405K. The buyer got a conventional loan for $324K and we (thesellers) financed $81K. The assumption/carryback addendum signed by the buyer stated that an account servicing company (Land America) was to receive both loan payments concurrently.
The original conventional loan was sold to Litton Loan Servicing and they were not made aware there was a junior loan holder.
The buyer is now 6 months in default with us (we tried to give him some time) and I'm having to jump through hoops with Litton to find out if he is in default with them. At this point I do not know because although we have faxed them the assumption/carryback agreement 3 days ago they say it is not in their system yet.
I'm getting nervous that we may not have as many rights as I thought. Please tell me where to turn for assistance (with this loss in income we can not afford high priced attorneys).
Thanks!
Janette
Sorry to hear all GREAT QUESTION. However in many instances 2nd lien holder is 2nd in lne over the 1st lien holder usually 2nd lien holders are SOL. You do have rights if the home is foreclosed, contact an attorney you will receive less than amount owed however 1st liens are usually satisfied. Selling the loan happen all the time. FYI THAT is why lending changed why loans 80/20 are thing of past 2nd lien were not getting paid to the lenders.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Janette,
Unfortunately your only avenue at this point is an attorney. Without knowing your circumstance no one but a lawyer can advice you properly. However junior liens gets viped out in a default unless they come to an agreement with the first lienholder.
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