i have 1st and 2nd mortgage on 2nd home, what happens to 2nd mortage if i allow home to go into foreclosure?

Asked by Bonnie Daus, Wareham, MA Mon Dec 20, 2010

if i allow 2nd home to go into foreclosure, what happens to 1st home, mortgage free

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8
Joe Arnao, Agent, Sanwich, MA
Mon Dec 20, 2010
Bonnie,
Stephen is right, Try a short sale and try to avoid some of the long term damage a foreclosure can have on your credit. There are investors that many of us Realtors know, that may be interested in your property as well as the general buying public. Talk to a couple agents and see if a short sale is right for you.
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Dec 20, 2010
Each home stands alone SHOULD NOT HAVE any effect on 1st home based on your authored statements. HOWEVER foreclosure will tank your credit scores. Have you consider a short sale? or other options

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
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Kevin Vitali, Agent, Tewksbury, MA
Mon Dec 20, 2010
Definitely talk to an attorney so you understand everything. But the long and the short of it most liens are cleared on the property in a foreclosure. There are exceptions to the rule but junior liens are wiped out by the first.

Have you considered other alternatives like a short sale?
0 votes
John Connolly, Agent, Braintree, MA
Mon Dec 20, 2010
The quick answer is that the second lean holder gets blown away by the first, speak to a attorney if you need one I have a great one for you, also consider a short sale to minimize your exposure to the banks coming back after you at a later time
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Heidi Zizza, Agent, Framingham, MA
Mon Dec 20, 2010
Bonnie just to reiterate definitely get an Attorney ASAP! They could possibly lien your primary if you dont have a homestead. You may want to consider a short sale.
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Madeleine Se…, Agent, Anaheim Hills, CA
Mon Dec 20, 2010
Yes consult a real estate attorney before making that kind of decision.I believe your question pertains to your tax consequences cos its a second home & not a principal residence.
Web Reference:  http://www.mado1.com
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Scott A. Nel…, , 02155
Mon Dec 20, 2010
With investment property there can be alot of differences. You really should consult with a local real estate attorney to look at your situation. Making the wrong choices can have some very serious consequences. There is a potential that your primary residence could be in jeopardy but alot is dependent upon your very specific situation & how you hold title & mortgages etc. This is why you need the services of an experienced attorney to assist you.

Hope that helps,
Web Reference:  http://www.MedfordHouse.com
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Anna M Brocco, Agent, Williston Park, NY
Mon Dec 20, 2010
Before considering such a scenario, in order to best protect yourself and any other assets you may have, it's in your best interest to consult with an attorney who specializes in real estate--he/she can best advise as it relates to your specific situation....rather than foreclosing, is a short sale an option...
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