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    mothergoose57's Avatar
    mothergoose57 Posts: 4, Reputation: 1
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    #1

    Jul 1, 2008, 09:55 AM
    Foreclosure on an equity line of credit
    The scenario is this. The home has a lst mortgage on it with a balance of roughly $135,000. There is a second mortgage loan in the form of an equity line of credit. The financial institution that gave the wloan has foreclosed on the second mortgage.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #2

    Jul 1, 2008, 09:57 AM
    Quote Originally Posted by mothergoose57
    The scenario is this. The home has a lst mortgage on it with a balance of roughly $135,000. There is a second mortgage loan in the form of an equity line of credit. The financial institution that gave the wloan has foreclosed on the second mortgage.


    OK - got the scenario. What's the question?
    mothergoose57's Avatar
    mothergoose57 Posts: 4, Reputation: 1
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    #3

    Jul 1, 2008, 10:04 AM
    Foreclosure on an equity line of credit
    The scenario is this. A Florida home has a lst mortgage on it with a balance of roughly $150,000. There is a second mortgage (an equity line of credit) and the balance on that is about $50,000. The financial institution holding yjr equity line of credit is foreclosing because no payments have been made in about 6-9 months.
    What happens in a situation like this where there are 2 separate lenders involved and the holder of the junior loan forecloses but the holder of the senior loan does not?
    Thanks for any help!
    mothergoose57's Avatar
    mothergoose57 Posts: 4, Reputation: 1
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    #4

    Jul 1, 2008, 10:11 AM
    Computer glitch. I didn't finish my post. My concern is explained in a subsequent post I made right after this post. Thanks!
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #5

    Jul 1, 2008, 10:45 AM
    Threads merged. Depedning on the terms of the promissory note, the second lien holder can force a foreclosure. The house is then sold and the 1st lien holder is paid with the proceeds. Anything leftover is then paid to the second lienholder. If that doesn't staisfy the lien they can still come after the homeowner.
    mothergoose57's Avatar
    mothergoose57 Posts: 4, Reputation: 1
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    #6

    Jul 1, 2008, 10:59 AM
    Thanks. This helped a lot!
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