2nd mortgage on home unable to pay due to loss of income, but the home mortgage current can the 2nd foreclose?

Asked by Dunham, Tennessee Tue Oct 7, 2008

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Rosalinda Mustafa’s answer
Rosalinda Mu…, Agent, Rancho Cucamonga, CA
Sat Oct 10, 2009
yes I believe so, but the 2nd lien usually gets nothing in foreclosure, so its usually the 1st lien who starts foreclosure proceddings.. i suggest you contact the 2nd lien holder and try to make some kind of arrangement, maybe a modification?
0 votes
Heather Sken…, Agent, Cookeville, TN
Sat Oct 10, 2009
I actually just closed on a property where there were two liens. These folks were stretched beyond their abilities each month to pay both mortgages. What we did in their instace, was sell the house for enough to pay off the first mortgage entirely, and requested a short sale on the second. The second lien holder accepted an offer of $10,000 for an approx. $30,000 balance. BUT here's the kicker...they agreed to release the lien only. As soon as closing ended, the sellers were supposed to continue make the same payments on that second lien. That sale did however, free them up from having the large monthly payment. I know this doesn't answer your question, but I thought you might get to that point later on and might want to know there are options. And to be honest I don't think that the credit was affected as badly as it could be with a true short sale. Just something for you to consider. If you'd like to meet and talk about selling your home, please contact me at hskender@aol.com.
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Keith Sorem, Agent, Glendale, CA
Tue Oct 7, 2008
Dunham
You should call the the lenders and talk with them both. There are serious issues and the best way to start is communication.

I also recommend talking with a Realtor experienced in short sales and foreclosures. You can also log onto the HUD website (see link) and talk with a counselor.

Time is of the essence.
Web Reference:  http://www.hud.gov
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Oct 7, 2008
They could foreclose. Contact the lender determine if you can work out a situation, however usually the 1st lien holder MAY prevent this from taking place you'll need to contact all parties. Sorry to hear about your situation. http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference:  http://www.lynn911.com
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