can you forclose on a 2nd mortgage only?

Asked by Iman, Orange, CA Mon Dec 15, 2008

I am working with the bank to modify my loan but did not ge an answer yet. what i would like to know what will happen if i dont pay my second and keep paying my first, will it carge off? both first and 2nd ortgages are with Wells fargo

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Daniel Klein, Agent, Beverly Hills, CA
Sat Jan 7, 2012
Unlike answers to your question, the true answer is the 2nd will and has the legal right to foreclose. Just because their loan is subordinate to the 1st, does not exclude them the right to get their money back through the foreclosure process.
Just because you pay your first and not the second, will not charge off any loans. Only if you go through foreclosure, or file a bankruptcy can a second be charged off.
Remember ,the lender will not be able to come after you for a deficiency in California.
Do not waste your time and money on "audits" They prove nothing, and after 4 years of cases against lenders, they have never lost a case due to an audit.
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., , Los Angeles, CA
Sun Jan 25, 2009
Of course they can ...but wont. Question! can you afford the 2nd mortgage and if not is it due to any hardships? ? If not consider counsel and file an action and seek to have both loans thrown out. An examiner such as NLS is a case development firm . Your file is audited and that is needed to substantiate your claims. You need to verify your real qualifying capacity to repay, integrity of the offering, instances for the lender straying away from printed guidelines, look for white collar fraud activity , set up the arguments for counsel if necessary in a court of law, comparing the two sets of loan docs and recorded instruments, interview past employees, agents and realtors for litigation purposes and set the file up for counsel. etc.

Finally we do an SEC public records search for the investment offering tied to your loans. Build it (the case) and they will come....Okay....For now you need to consider the lender may be liable for the loans made to you under predatory lending guidelines. It is usually the second mortgage piece that is the toxicity. (Check your loan docs and see where Wells is not the lender). Argument for having the debt DISMISSED!

The second is worthless and you cannot enforce a fraud or bad faith settlement. . Now was any portion of the loans proceeds for cash expenditures where cash out will be treated as a 1099 reporting issue .. .but that offsets with your higher "loan balances versus anticipated sale price. Its an offset to capital gains so…good luck!
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Matt Miner, Agent, Seattle, WA
Tue Dec 16, 2008
The second mortgage can force the sale of your home. The lender in first position would get paid off and the second mortgage could collect anything left over. You need to try to negotiate with your second lender also. Remeber they have a lien. There are people out there that can help you renegotiate the loan. Contact me if your still in need of help, and I can put you in contact with someone to help.

Matt Miner
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Kristina Zack, Agent, West Hartford, CT
Tue Dec 16, 2008
Keep paying until you get answers. Wells Fargo takes a long time to get back to you. I have had lots of experience with them when I work on sales with my clients. They can start foreclosure on the second, but if you keep paying, there will be a better chance of a modification..or on better terms. Best of luck!
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Randall Sand…, Agent, Charleston, SC
Mon Dec 15, 2008
I would keep paying both for as long as possible until you find out if Wells will modify your loan. If you choose to not pay the second, it can drastically affecy your credit score in the future. Try to hang in there until the bank gets back with you....I am sure this is a frustrating process.

Best of luck & Happy Holidays,

Randall Sandin, 843-209-9667,
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