if the loan is secured on the property, then if you fail to make payments on any part of it the lender(s) can foreclose the loan and seize the property. in any event you will be liable for the any difference between the loan value, what you have paid, and what the proceedds from the sale of the property.What would happen with my house if I stop paying the second mortgage which I can't afford?
Failure on your part to pay the monthly mortgage payments on your second mortgage will result on the second mortgage foreclosing on you.
Depending on what foreclosure procedure the second mortgage holder use on you will determine if they will seek a deficiency judgment on you or not.
If the mortgage holder use the judicial foreclosure procedure then they could sue for a deficiency judgment. Under this procedure you would also be entitled to a redemption period ranging from 30 days to 3 years depending on the state laws in which you reside. Most lenders do not use this procedure.
If the mortgage holder use the non-judicial foreclosure procedure, then they normally would not go for a deficiency judgment, nor would you have a redemption period. Once the property is sold at the foreclosure auction then you will be required to leave the house by the new owner or your lender if the house fail to sell at the foreclosure auction.
You might check with your lender to see if they are able to work something out. You might request that they extend the amortization period thus reducing the monthly mortgage payments.
You might ask if they can make your second mortgage into a silent second mortgage for the next few years. This would eliminate you from making a monthly mortgage payment for a few years. Then you will be required to pay if off or start making the monthly payments once again.
The key point I am trying to make is that you should call your mortgage holder and see if there is a possibility that you can work something out with them.
They would rather do this as they do not want your house.
I hope this has been of some use to you, good luck.
';FIGHT ON';
Might want to consult an expert before making any decision, but a major factor in the second lien holder following through on the foreclosure lies in the value of the first loan compared to your current home value, if the current value of the home does not even cover the first loan value the second lien holder may just sit and wait until housing prices increase before moving ahead
Since in order for the second lien holder to acquire title to the land the first loan must be paid, now if you homes equity will not even cover the fist loan, the second lien holder is in a tough spot
The second mortgage holder has just as much right to begin foreclose proceedings as the first. After all, he gave you CASH in good faith.
Even if he does not recover his investment, he may do it just for the hell of it if he sees that you are not willing to repay the loan. All HIS expenses including attorneys and filing fees are tax deductible.
Better call them up to see what can be worked out.
the company that owns the second mortgage will foreclose, but will have to pay off the first mortgage with the proceeds before it can recover any money for itself.
If you didn't pay your second mortgage, that company would forclose on it and you would be evicted.
Same foreclosure that occurs if you don't pay the first. Only thing is that it will be subject to releasing the first mortgage.
They are both mortgages, meaning that they are collateralized by your home.
why did you get the second mortgage in the first place? didn;t you do a 5 year future budget projection?
You need to contact your lender...you could lose your house.
No comments:
Post a Comment