anthonybcfive, Home Owner in Brooklyn Center, MN

If you are in foreclosure on your first mortgage, what are the consequences of not paying off the second?

Asked by anthonybcfive, Brooklyn Center, MN Wed Jul 4, 2012

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1st lienholders do not pay off jr lienholders at foreclosure. Most of the time the debt from the second remains collectable ( check your state laws ) even after foreclosure. You may want to consider a short sale. In a short sale you can usually settle all your liens. Good Luck.
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0 votes Thank Flag Link Thu Jul 5, 2012
Hi Anthony, I forgot to mention that fees for the short sale are paid by the lender.
0 votes Thank Flag Link Wed Jul 4, 2012
Hi Anthony,
Sounds like you need serious professional help. Your second mortgage probably will not be discharged by the foreclosure. Most of my clients is similar situations choose the short sale route. Your credit will be dinged but our attorneys will make sure all liens are released. Call me to discuss.
0 votes Thank Flag Link Wed Jul 4, 2012
My experience has been with 2nd mortgages, they can attempt to follow you even after the mortgage holder has recovered the property. Typically my clients opt to go through the short sale process because we can negotiate the 2nd mortgage as well and make sure there is no deficiency judgement, so they can't come after you later. I have seen 2nd mortgage holders sell the notes to collection agency.....I always refer my clients to an attorney as they can give legal advice, I can't.
0 votes Thank Flag Link Wed Jul 4, 2012
If your house goes through FORECLOSURE, all liens should be satisfied.
As a rule, the 1st Lienholder will have to take care of the other Liens.
This is too important, for you not to take it to an Attorney;
particularly since N.Y. is a RECOURSE State.

Good luck and may God bless
0 votes Thank Flag Link Wed Jul 4, 2012
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