Foreclosure in Houston>Question Details

Lou Wiggins, Real Estate Pro in 77014

What happen to the second loan, and will it have be repaid?

Asked by Lou Wiggins, 77014 Wed Jan 18, 2012

What exactly is going on when the mortgage company charges off the second mortgage and only requires payments on the first or primary loan? Will this be an issue when it becomes time to sell the property?

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That would depend on how the short sale was negotiated. Usually the second lienholder will accept a settlement of $X amount and will consider the loan as 'satisfied'. If not, then the lien will still be attached to the property. That's why it's important to get a committment of title from the title company to make sure there's no liens on the property.
Web Reference: http://www.amandahomes.com
0 votes Thank Flag Link Fri Jan 20, 2012
Lou,

Have a title company open title. I had a short sale where the seller thought the second lien was gone and it was not. We had to separately negotiate that lien to close the deal. So open title and make sure there is no second lien. These liens get sold and sometimes people lose track of them but if they are there they will show up on title.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes Thank Flag Link Wed Jan 18, 2012
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