If I pay off my first mortgage, and still owe a second, can the second mortgage company foreclose?

Answer 1

Yes, as you pledged your house as collateral for that 2nd mortgage. It's secured debt!

Answer 2

Yes. A mortgage is a lien against the property. While you had the first mortgage, that mortgage company took presidence as it was the primary mortgage. Now that the first mortgage is paid off, the second mortgage is the only "loan" with a lien agains the property. If you do not pay the second mortgage the bank can foreclose on your home and take it.

Answer 3

As others have said, the answer is 'yes.' If you pay the first mortgage, and don't pay the second, the second mortgage holder can foreclose. There's no relationship between the first and second mortgages, even if you're paying to the same company. They are two separate loans.

If the first mortgage holder foreclosed on your house, the second mortgage holder would not get their money, but you would still lose the house.

If the second mortgage holder filed foreclosure papers first, the first mortgage holder would lose their money, but you would still lose the house.

Each of these loans is a separate debt you owe. If you can't pay both mortgages and you still have equity in the house, and/or sufficient income (from all sources), and your credit qualifies, you may be able to consolidate both mortgages into one. This would pay off each lender (the holder of the first mortgage and the holder of the second mortgage) and you would have an entirely -new- loan. The new loan would have no relation to the two previous loans. Basically, the first two lenders are paid in full. Now you owe money on a new piece of paper.

However, because interest rates have been rising I don't know how that affects your ability to get a new loan. Be aware that if you investigate a new loan that consolidates your two existing mortgages, you may end up with one of the newer creative loan formats, which start out with really low monthly payments that escalate as interest rates rise.

These can be very dangerous because if your income doesn't rise as fast as the mortgage payments, you could be in a foreclosure situation again in a year or two.

Many mortgage companies have programs to help homeowners in trouble. If you talk to your mortgage company, they may be able to postpone one or two payments. Those payments would be added to the end of your loan period and you may have to pay a fee or extra interest for this accommodation. You may also have to give them updated information on your income.

But this may give you time to save enough money to continue making payments. What you should NOT do is spend all the money that you're not paying on your mortgage(s) for the "free" month or so on other bills, IF you want to save your house. If you spend it all, you'll end up in the same bad spot in a few months.

If you try to find a new loan to pay off the two mortgages you already have, but can't find an affordable option, your best bet is to put the house up for sale. Be sure to let both your mortgage companies know that you're doing this. They would want you to be able to sell your house because both mortgages get paid off (assuming that you have sufficient equity) at the closing.

Whatever you do, you DO NOT want the house to complete foreclosure because that goes on your credit report. There are apartment owners who won't rent to you if you have a foreclosure on record, and you'll have a much harder time buying another house. Selling your house yourself means that you have control of the situation and you avoid having the foreclosure on your credit report.

I wish you the best of luck in finding a solution that works. And if your house is close to, or in foreclosure, be careful about any investors who offer to save your house for you. There are some real investors out there -- and there are crooks. And even the real investors are not looking out for your personal interests. They're looking for a good financial transaction -- i.e., one that makes them money. So be realistic. But take action.

Answer 4

Yes your second mortgage company can foreclose and make you sell your home and the profit will go to pay your second mortgage. If you are having problems with paying it call them...these people want there money without having to hire attorneys to use their attorneys on proceedings. They will generally work with you if they havent already.

Answer 5

With acquaintances like that you don't desire any enemies. they could and could foreclose to get in spite of they could from the sale of the valuables. the first mortgage receives paid off first and then any left over money are utilized in the direction of the second one mortgage and finally if there is something last you get it. What precisely did your acquaintances wind up with? Are you keeping they walked faraway from their second mortgage and under no circumstances something surpassed off? i do not trust that.

Answer 6

Yes. You signed a note saying that you would pay, and they have a right to foreclose if you are delinquent in your payments. Whether it's the first, second, or even third mortgage, non-payment can result in foreclosure.

Answer 7

Yes they can. They will however be second up to the plate after the first morgage holder to receive money from the sale. That is why they charge a higher intrest rate.

Answer 8

If you don't pay it, absolutely.

Answer 9

yes.