The mortgage company that holds the second on my rental property in the amount of $60,000 is trying to foreclose on my entire rental property that is valued at $450,000. Is this possible?
2006-09-18 05:53:43 · 11 answers · asked by Mel-Lee-Mel 1 in Business & Finance ➔ Renting & Real Estate
You have given them a Deed of Trust to secure a Note. If you do not make the payments according to the law, you can and will be placed in default. When you are in default, they are able to foreclose on the property in order to pay the debt. No permission from anyone is required.
Assuming you don't come to some sort of agreement, it will go to auction. This auction will, by the way, wipe out any liens on the property junior to the second, but the purchaser's claim will still be subject to the claims of the holder of any liens senior to that second (in other words, the first). So when they buy the property for $50,000 at auction, they still owe the first mortgage holder whatever balance there is. Since this is likely to be essentially the full value of your property, there probably won't be many bidders and your property is likely to become lender owned, at least until the first forecloses.
In some cases, subordinate lienholders will show up at auction to defend their interests by bidding on the property.
Go talk to your lender. I have never heard of a regulated lender that wants to foreclose (hard money does). Chances are good you can work something out.
2006-09-18 08:03:05 · answer #1 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
YES, they CAN foreclose on the ENTIRE home -- and that would be subject to the payment of not only their debt, but the original (1st) mortgage company will also have a say in this problem too -- and they may combine to foreclose together.
YES, if you have not paid the mortgages (either one) then you can be foreclosed on.
2006-09-18 06:05:25 · answer #2 · answered by sglmom 7 · 1⤊ 0⤋
Yes, they can make life miserable for you, if you default on the loan. If you're still paying on the first, however, they can't take the property, but they can force the bank that has the first to start foreclosure proceedings so they can get their money out of the property.
If you're having trouble paying, contact them by phone and work out a payment plan. They're usually willing to make some arrangements with you to keep the money coming in. They'd Rather do that than lose it all. They know that it's going to cost them to collect if it goes into foreclosure.
2006-09-18 06:00:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, but they're going to have to get consent from the first mortgage holder since they will become liable for it after they foreclose on the second note.
2006-09-18 06:19:27 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Yes they have the right to do this not only that but then the other company that carries the first mortgage is going to demand that the loan be paid in full. So be very careful and I wish you good luck and best wises.
2006-09-18 06:02:21 · answer #5 · answered by Barry G 5 · 0⤊ 0⤋
If you have equity in the home I suggest you refinance. There are legal actions which they can take against you but because they are in second position action is limited but can make your life hell and lead to you losing your home. If you have equity in there I suggest you visit my company website www.JustGetAloan.net We assist people with all credit issues get competitive loan programs. Because no matter what the situation; Cant we all just get a loan ?(TM) Also Feel free to contact me at 866 530 7300 ect 7305 or email me at jfreemna@bourdeaufinancial.com for further assistance.
2006-09-21 04:03:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes. If you stop paying on the 1st mortgage they will have to pick up those payments, too, or the 1st will foreclose them out.
2006-09-18 10:40:00 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes, that's the nature of the security for a mortgage, first or second.
2006-09-18 06:01:26 · answer #8 · answered by auntb93again 7 · 0⤊ 0⤋
Yes, very possible. In fact, in your deed of trust, it states that if you dont make payments, they will sell the property to the public, enough to pay off both your loans. Can you refinance asap? My email address is finance411@msn.com
2006-09-18 06:12:13 · answer #9 · answered by Photographer 6 · 0⤊ 0⤋
yes, read the mortgage and note that you signed.
2006-09-18 08:19:06 · answer #10 · answered by joy 3 · 0⤊ 0⤋