We had a home 80/20 home loan through the same lender. The home was foreclosed on in January of this year, and now a second company that the 20 loan was sold to is coming after us for the money. The first lender has told us that the home hasn't even been sold yet. So how do they know if they don't have enough money to pay off the loan?
2007-11-02 05:02:41 · 4 answers · asked by simplicity 1 in Business & Finance ➔ Renting & Real Estate
Regardless you owe the money not the other lender.
The second lender is in second position and will only get something if there is any left over, they will keep coming after you because you OWE the money.
2007-11-02 05:13:57 · answer #1 · answered by Seano 4 · 0⤊ 0⤋
The answer here is fairly simple. Unfortunate, but simple. Your second mortgage is probably a home equity line of credit or similar product. This is essentially a giant revolving credit account using your house as collateral. Since you no longer own the home, the loan no longer has financial backing. The bank is calling in the loan as a result. The second mortgage holder doesn't care that the house is being foreclosed on. All they care about is the fact that you are now holding unsecured debt. I'd consult an attorney about this pronto. You need to work out a payment plan or find someway to keep this debt current.
2007-11-02 05:20:16 · answer #2 · answered by Jay P 7 · 0⤊ 0⤋
It doesn't matter. The first lender has the home and will sell it for whatever they can get for it, which may or may not cover the 80%. The 2nd lender wants their money, and you no longer posess the home.
2007-11-02 05:07:44 · answer #3 · answered by countryguyhfc 5 · 0⤊ 0⤋
Sorry, yet while the 20 loan wasn't a lien against the abode, yet a private loan,the foreclosures did no longer manage it. you're nevertheless on the hook. in line with possibility communicate along with your economic organisation and ask for a protracted repayment term.
2016-11-10 01:30:33 · answer #4 · answered by fones 4 · 0⤊ 0⤋