If your first mortgage take a achievement surrounded by lieu, what happen to the second mortgage?
Do the 2 companies duke it out? Or does the former homeowner have to strike a deal beside the company that held the second mortgage?
Answers:
1st take ownership. 2nd becomes unsecured, and theoretically can sue the debtor for the defect.
minus reading the paperwork, or knowing which state this is in, my bet is that the terms of your second mortgage prohibit this minus their consent.
it may be that the second mortgage company would then have the preference to buy out the first and thus take the house. They also might have the resort to immediately sue you for the amount owed.
are you also planning to file for ruin? you might need a BK attorney before this is over. Source(s): experience
The second will follow you out. The first does not "duke it out", you simply have to continue paying the second.
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Answers:
1st take ownership. 2nd becomes unsecured, and theoretically can sue the debtor for the defect.
minus reading the paperwork, or knowing which state this is in, my bet is that the terms of your second mortgage prohibit this minus their consent.
it may be that the second mortgage company would then have the preference to buy out the first and thus take the house. They also might have the resort to immediately sue you for the amount owed.
are you also planning to file for ruin? you might need a BK attorney before this is over. Source(s): experience
The second will follow you out. The first does not "duke it out", you simply have to continue paying the second.
Related Questions:
Can I lower my PMI (private mortgage insurance) after a flawless 5yr expense history?
Can I lower my PMI (private mortgage insurance) with a 5 yr flawless payment history? I own owned my home for 5 years and the inital PMI cost was high due to 0$ down. Now that I own proven to...