John Hall & Associates
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The question is will they? It depends on the specific facts of your situation..
Seek help from a real estate attorney for you specific circumstances.
With out a thorough analysis, we shouldn't even hazard a guess. It would be a disservice to you.
In the current real estate market a second mortgage loan, whether a purchase money loan or a non-purchase money loan such as a HELOC, will never foreclose. The reasons are that, one, the second mortgage lender may then have to pay off the first mortgage loan or lose the property to foreclosure; two, there is generally no equity in most homes subject to foreclosure in this current real estate market; and, three, the second mortgage lender would not be able to pursue any deficiency claim against the owner of the home after the foreclosure. (In prior â€œboomâ€ years, however, a second mortgage lender would occasionally foreclose on the home, and try to â€œflipâ€ the home quickly to make a profit before the first mortgage loan foreclosed.)
This was answered via Chris Combs web site.
Good Luck CC!
Best of luck