Question by Painted Jezebel: What happens to the second mortgage when the first mortgage forecloses?
I am going through a foreclosure on my first mortgage, what are my options with dealing with the second mortgage? Any legitimate websites with guides for dealing with the aftermath of foreclosure would also be appreciated.
Best answer:
Answer by Real Estate Guy
read this article. It should explain http://www.washingtonpost.com/wp-dyn/content/article/2008/04/11/AR2008041101914.html
What do you think? Answer below!
4 Comments Received
You can continue to pay on the 2nd mortgage.
If and when the bank sells your house, the amount of the sale will be applied as follows:
First, the costs of repossession, foreclosure and the sale will be paid.
Second, money will be applied to your outstanding balance
Third, any other lienholders (2nd mortgage) will get money.
In this market, the bank is going to be lucky to sell the house for enough money to pay the fees let alone the first mortgage.
So, what will happen is that the 2nd mortgage holder will want you to pay and they very well could sue you and garnish your wages to get paid.
Good luck.
They are not foreclosing and need to be repaid if the first does not have the money to pay them too after the foreclosure.
Gem deserves best answer on this one she laid it on the table outright. i don’t typically hear of the 2nd mortgage suing unless their private money but theyre entitled to sue. Hope I helped.
“Email me at jdawson@gracefunding.org maybe I can help!”
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