I had a 80/20 loan on my property. The 80 was foreclosed on what is the position of the 20? The loan company is trying to make me pay it.

ms help

If my 1st mortgage foreclosed and my 2nd didn not is this still a valid lien on the property?

Fr_Chuck

what happens, is when it is foreclsoed, the 2nd lien holder is notified, when the property sells, the money goes to the cost of the sell, then to the first lien holder and if there is any money left, to the second lien holder, At the end of the foreclosure their will be no 2nd lien either.

Fr_Chuck

They would have been paid any money over the 1st mortage. If they did not get paid all of thier money, I will assume they still want you to pay the balance.

ms help

If a lien holder had both mortgages and only foreclosed on one is it my fault? The second was not a unsecured debt. It was intended to cure the full loan balance on the initial buy. For example, when I purchased the house in Georgia I was given a 80/20 loan. The full purchase price was $195,000.00 the first was for $156,000.00 and the second was for $39,000.00 The same loan was obtained by the same mortgage company. This said mortgage foreclosed on my 1st mortgage and held the second for recovery. What can I do?

excon

Hello ms:

If you told us the whole story, maybe we could help. But, you didn't give us anything to go on.

exocn

Michimom

What state are you in? It's state specific. For ex, in Michigan, the lien still exists. Therefore, you can 1) Not pay. Consequence: they either file a deficiency claim which means if you somehow come into money later, they will take it. 2) They write it off as a business loss. Consequence: at the end of the year you will receive a 1099 for the amnt owed and will be responsible for paying taxes on it.

My husband is in loss mitigation for a major US lender, BTW.