Foreclosure in Saint Paul>Question Details

Concerned, Home Seller in Saint Paul, MN

If 1st & 2nd mortgages are with the same bank will we be responsible for the 2nd when we foreclose? Should we continue paying on 2nd or stop?

Asked by Concerned, Saint Paul, MN Tue Jan 31, 2012


Help the community by answering this question:


Christopher Block’s answer
Number 1 the only reason why the short sale has not been successful is the listing agent not your house or your fault.

However I am a little concerned this is might not be considered your primary residence anymore. If so now there are potential tax consequences you might not like and absolutely speak with a tax attorney.

As I always say no short sale is the same. You already have your answer concerned home seller so either do something about it right now or risk the chance of a deficiency judgement down the road. There is nothing else these other agents can give you, and quite frankly now that I know you have been trying a short sale I am shocked you are not talking to the listing agent about this!
1 vote Thank Flag Link Thu Feb 2, 2012
I have attached a link to Minnesota's statute on this. As others will tell you now is the time to learn your rights in Minnesota! I highly advise you consult with an attorney and a realtor to discuss all the options available to you. Every city/county/state also provides FREE HELP to you at no cost as well. Do everything you can.

No one can tell you exactly if the 2nd mortgage WILL place a judgment against you. I can only tell you that negotiating short sales the 2nd mortgage CAN place a judgement against you. It does not matter if it is the same lender. We are a Non-recourse state as I have said many times on the 1st loan, but this does not pertain to 2nd's.

I believe professionally that those who have 2nd mortgages are the best candidates for short sales because I can get full satisfactions on both the 1st and 2nd lender. In other words, you still have your home that can be leveraged to satisfy all debts.

I will not advise you to stop paying your mortgage or not. I can only reiterate to take action now and learn your rights. Please feel free to contact me if you would like a free consult on how a short sale can help you avoid possible problems down the road and give you peace of mind. Consult and attorney. Reach out to all the non-profits available to homeowners in our state that have counselors ready and willing to help.

By empowering yourself and taking action now you will have peace of mind by knowing exactly the best course of action to take in order to protect yourself. You do not have to be CONCERNED.
1 vote Thank Flag Link Tue Jan 31, 2012
You will be responsible for the second mortgage. Some times they wont come after you if they are with the same company.
0 votes Thank Flag Link Thu May 10, 2012
You just keep getting answers on this. It might be a good idea to contact the Minnesota Home Ownership center
0 votes Thank Flag Link Wed Apr 25, 2012
Are you doing a short sale? Are you currently listed with a real estate agent for sale?
If so, speak to your agent.

If you are not, I would love to help you with your issue

Feel free to contact me anytime

My contact info is below.


Ravit Berg @ RE/MAX Results

15451 Founders Lane | Apple Valley | MN 55124
Cell - 952.334.4179 | F - 651.460.1272 |
0 votes Thank Flag Link Tue Apr 24, 2012
You may want to talk to a lawyer but most likely you will still owe the money especially if it is a small bank. A large bank may let you slide..
0 votes Thank Flag Link Tue Apr 24, 2012
I would direct this question to a real estate attorney.

Kris Lindahl, CRS, CDPE, SFR
Edina Realty
0 votes Thank Flag Link Mon Mar 26, 2012
An agent with the CDPE (certified distressed property expert) like myself can help you navigate these issues at no cost to you. There are a lot of great agents here in the twin city area that would be happy to help you with this. As stated in earlier posts, the clock keeps ticking so I would encourage you to contact myself to take advantage of every minute left to keep from going into foreclosure. I also want commend you for reaching out for advise and help!
0 votes Thank Flag Link Wed Feb 1, 2012
We are already in the depths of foreclosure, there has been a sheriffs sale. We moved (2 hrs. away) and do not occupy our house anymore. We have it on the market and have tried since July to sell it at short sale with no luck. We stopped paying the mortgage because we can't pay the rent where we are now and the mortgage.
0 votes Thank Flag Link Wed Feb 1, 2012
In a situation like this it is best to get advice from the right type of professional rather than relying on advice on a free forum. Contact the Minnesota home ownership center. They are paid professionals standing by to help people just like you. When you are ready to buy or sell a home contact a Realtor.
0 votes Thank Flag Link Wed Feb 1, 2012
I will also add that I sometimes forget to mention that Real Estate agents and Realtors not only should be able to speak with you about short sales but also loan modifications. Just got done speaking with another person on Trulia the other day. Thank god she finally got her act together before the end of redemption, and this person was actually able to do a reverse mortgage on her own house and save her equity and home.

Others who have loans owned by Freddie or Fannie also have quite a few options. Every person's situation is different, but I will just reiterate that it does not cost you anything to seek help. Hope to speak with you soon.
0 votes Thank Flag Link Wed Feb 1, 2012
Dear Concerned,
Don't assume that foreclosure is your only option. Have you tried getting a loan modification? If that is impossible, are you working towards a short sale? There is a timeline, and the clock is always ticking.
It is better to seek advice earlier than later when you have fewer options.

A real estate attorney who negotiates short sales regularly could advise you so you can make an informed decision for your family. Normally, agents who work with shorts sales, frequently using attorneys, negotiate a satisfaction of both loans. Even if both loans are with the same bank, both loans need to be negotiated together for full satisfaction. Every bank has distinct policies, every situation is specific and needs personal attention. Although Minnesota law protects you, some of those laws will expire at the end of 2012. Right now you have time on your side, use it.
0 votes Thank Flag Link Tue Jan 31, 2012
Dear Concerned Seller from St Paul,

I have completed several hundreds short sale with one and with 2 lenders successfully.
I can help you in your situation.
Regarding your second lender, we must negotiate the proper outcome which is full and final satisfaction with the second lender otherwise there is a potential outcome of a judgment.

It is all up to negotiation outcome. I am a strong negotiator and can help you in your situation.

There is NO cost for our services to you at ANY time.

I negotiate all my short sales myself and specialize in foreclosure and short sales. I am also CDPE and SFR certified (Certified Distressed Property Expert and Short sale and Foreclosure certification).

Presently, I work with lenders in helping distressed homeowners options to keep their homes.
As an experienced real estate agent, I know what it takes from start to finish helping a family facing financial difficulties. I bring expert knowledge, valuable experience blended with the latest technology, a well-defined marketing plan, a comprehensive network, energy, enthusiasm and the excitement of a job well done.

Please contact us today as time is running out.

My contact info is below.

Thank you,
Ravit Berg.
Ravit Berg @ RE/MAX Results

Cell - 952.334.4179 | F - 651.460.1272 |
0 votes Thank Flag Link Tue Jan 31, 2012

One thing to keep in mind that there are both servicers and investors involved in this transaction. I deal with first and second mortgage situations all of the time and rarely are they owned by the same investor - even through you mail your check to the same bank. The bank you call and mail your check to has a contract with the person who loaned the money to service the loan on their behalf.

To get an idea of what you will be responsible for in a foreclosure you need to talk to a good real estate attorney (Steve Nash at as the situations are far too complicated to deal with over Trulia.

Cameron Piper
licensed MN Real Estate Broker
Coldwell Banker Burnet
Web Reference:
0 votes Thank Flag Link Tue Jan 31, 2012
Before considering foreclosure and in order to best protect yourself, do consult with an attorney who specializes in real estate, see exactly what options you may have; most professionals do offer a free consultation, or if you cannot afford one, contact your local Legal Aid Society for a pro bono attorney, free. It's possible that a short sale may be a better option over foreclosure.
0 votes Thank Flag Link Tue Jan 31, 2012
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