What happen if I defaulting on a 1st mortgage but not on a second?
Here's the story in a nutshell. I purchased a condo in 2005 on an ARM. Just out of a divorce, I arranged to consolidate some debt with a home equity line of credit call a 125% loan. Bad move, since I didn't first refi the ARM. Now, the housing market has slumped, my property meaning is down, I have negative equity, and I can't refi. The ARM have gone up and is due to go up again in a couple months. My costs has doubled and I can't afford it. What will happen if I non-attendance on the 1st mortgae but remain current on the second? In other words, what happens to the second mortgage, and how might I be liable even if the payments are current on that loan?
Answers:
Your second mortgage holder has the choice of either protecting it's position by bringing the first current and pursuing it's own foreclosure or allowing the first mortgage to foreclose them out and pursuing you for stipend on the note up to and including the possibility of suit and judgment. Source(s): 20+ years as a direct mortgage lender
If the first forecloses they drag the 2nd into the foreclosure.
Simple. The first morgage will foreclose. It will pay itself bad from whatever the foreclosure sale brings surrounded by, including paying off its costs in have to foreclose in the first place. If there is any money vanished over, it will go to pay sour the second mortgage. If the money from the sale isn't sufficient to pay stale both, you will wind up owing the rest and getting a really bad credit report. And you condo association might also return with involved in foreclosure if you dont pay the assessments. Sorry>
The first has primary position and will repo or foreclose on the property - the second will only win paid if there money from the Dutch auction to do so. The second holder is in a lousy position for colateral but will still come after you. You could go to the holder of the first and try to renegotiate - the alternative is that they will own a house valued lower than what they are owed. They should prefer to own lower steady payments - not a loss.
newmexico is correct....the second get dragged into it by the first...this will be out of your control
good luck...and stay away from ARMs in the adjectives
Related Questions:
Mortgage company requests my 2005 and 2006 income import tax returns. Is it required?
I applying for a home refinance loan. Mortgage company want me to sign a form to obtain my 05 and 06 income tax returns. Is it required? Some companies want 5 years or more....
Answers:
Your second mortgage holder has the choice of either protecting it's position by bringing the first current and pursuing it's own foreclosure or allowing the first mortgage to foreclose them out and pursuing you for stipend on the note up to and including the possibility of suit and judgment. Source(s): 20+ years as a direct mortgage lender
If the first forecloses they drag the 2nd into the foreclosure.
Simple. The first morgage will foreclose. It will pay itself bad from whatever the foreclosure sale brings surrounded by, including paying off its costs in have to foreclose in the first place. If there is any money vanished over, it will go to pay sour the second mortgage. If the money from the sale isn't sufficient to pay stale both, you will wind up owing the rest and getting a really bad credit report. And you condo association might also return with involved in foreclosure if you dont pay the assessments. Sorry>
The first has primary position and will repo or foreclose on the property - the second will only win paid if there money from the Dutch auction to do so. The second holder is in a lousy position for colateral but will still come after you. You could go to the holder of the first and try to renegotiate - the alternative is that they will own a house valued lower than what they are owed. They should prefer to own lower steady payments - not a loss.
newmexico is correct....the second get dragged into it by the first...this will be out of your control
good luck...and stay away from ARMs in the adjectives
Related Questions:
Mortgage company requests my 2005 and 2006 income import tax returns. Is it required?
I applying for a home refinance loan. Mortgage company want me to sign a form to obtain my 05 and 06 income tax returns. Is it required? Some companies want 5 years or more....