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    knuckles52's Avatar
    knuckles52 Posts: 2, Reputation: 1
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    #1

    Apr 30, 2008, 09:37 AM
    Holding promisory note for buyer behind 1st mortgage
    If buyer defaults on my promissory note.What is my recourse since I am 2nd behind the 1st mortgage?I am asking from the sunny state of Florida.
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #2

    May 1, 2008, 01:40 PM
    Does your note allow you to accelerate and demand payment of all principal? Are you holding a second mortgage? You can elect between suing for each payment in default or demand the payment of all principal and interest owed to you. Also, you could contact the first mortgage holder and offer to purchase the note and mortgage; then you will hold the first and second, and you can foreclose and get the house back.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    May 1, 2008, 04:51 PM
    Are they also in default in the first mortgage ? Often if the home forcloses, the second mortgage holder gets nothing. What does the terms in your loan agreement allow you to do ?

    This is why if you are the seller and are going to hold a second, it should never be more than you are willing to risk to lose
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