They are just saying that to scare you. However, in some areas this is possible, I would check with your state's attorney general's office and ask them that question. Failing that, I would seek the advice of a competent real estate attorney, most real estate agents aren't qualified to answer these questions for you since they deal with legal matters that we are not licensed to handle.
If you foreclosed on your first mortgage, there may not be enough money from the foreclosure sale to pay the second mortgage holder. If there is equity remaining in your home after the foreclosure sale, the second mortgage holding company is entitled to the remaining balance.If you any more question please search
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I know this may be off the topic, but most people do not understand that there are also tax consequences associated with foreclosures and short sales. For this reason, you definitely want to consult both a real estate and tax attorney.
If you are the one being foreclosed and you would like to try and remain in your home, you might want to contact your lender and see if there is another solution. Most lenders will try and work with people that would like to remain in their homes.
They are in 2nd lein position, so that is something the banks are going to have to work out in the sale of your property. The first mortgage holder has the majority of ownership in the property the second one has a little. Most likely the second mortgage holder will lose more money in the sale of your home. But I am not for certain. Thats a very good questions and I would like to see more answers on this.