Does the borrower have to pay back a second mortgage if the first is foreclosed on?

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Does the borrower have to pay back a second mortgage if the first is foreclosed on?

2007-03-12 07:28:36 · 3 answers · asked by luvyajwj 1 in Business & Finance ➔ Renting & Real Estate

3 answers

It's very possible, yes. THe first is required to share any profits exceeding their lien with teh second lienholder.

If the second lien is not satisfied, they can pursue you for the balance. Some do, some write it off instead.

2007-03-12 07:32:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋

no; second lien holders are entitled to nothing when a home is foreclosed. That's why the rates are 2-10% higher on second mortgages.

2007-03-12 19:30:59 · answer #2 · answered by mgbendel 1 · 0⤊ 0⤋

no
but many lien holders will try to come collect it later.
ignore them.

they had a right to pay off the first to save their position.

2007-03-12 14:35:01 · answer #3 · answered by kemperk 7 · 0⤊ 0⤋