Ask Experts Questions for FREE Help !
Ask
    ms help's Avatar
    ms help Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Sep 15, 2007, 12:25 PM
    1st and 2nd mortgage
    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's Avatar
    ms help Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Sep 15, 2007, 12:39 PM
    1st and 2nd mortgage
    If my 1st mortgage foreclosed and my 2nd didn't not is this still a valid lien on the property?
    :confused: :confused:
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #3

    Sep 15, 2007, 06:17 PM
    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's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #4

    Sep 15, 2007, 06:19 PM
    They would have been paid any money over the 1st mortgage. If they did not get paid all of their money, I will assume they still want you to pay the balance.
    ms help's Avatar
    ms help Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Sep 15, 2007, 06:24 PM
    1st and 2nd
    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's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #6

    Sep 15, 2007, 06:43 PM
    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's Avatar
    Michimom Posts: 10, Reputation: 3
    New Member
    		  
    #7

    Sep 15, 2007, 06:55 PM
    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Kid's fantasy movie I saw in 1st or 2nd grade (between 1989 and 1992) [ 6 Answers ]

I remember very little of the movie now, but I do remember that near the end of the movie, the main character (a young boy) escapes a dungeon/castle using an invisible cloak or something else that made him invisible? The main character was somehow transported from the real world into a fantasy...

1st mortgage and HELOC can we sell? [ 2 Answers ]

We still owe on a first mortgage and we have a HELOC. Can we put our home on the market and use the proceeds to pay off the HELOC? We are pretty sure with the sale we would receive enough to cover both.

Selling with 1st & 2nd Mortgage [ 2 Answers ]

We need to sell our home in which we are a little "upside down" -- between the first and second mortgages, we owe about $3000 more than the house is valued at right now. A friend told me I could ask the second mortgage holder to release their lien so that we can sell the house, and then write up...

1st and/or 2nd foreclosure [ 2 Answers ]

My wife and I recently purchased a new home and rented out our original home... within a few weeks the renters left... we are now stuck with a 1st and 2nd on the first home and a new mortgage on our new home... the first home is maxed out on equity... we can't afford a 1st and 2nd and our newest...

View more questions Search