2007-12-20 10:32:06 · 5 answers · asked by dandv 1 in Business & Finance ➔ Renting & Real Estate
You're not paying the bill. If the 2nd is with a different lender and you are paying that bill you wouldn't be getting a foreclosure notice from them. But you can still lose your home.
2007-12-20 10:39:59 · answer #1 · answered by Mona 2 · 2⤊ 0⤋
likely, the 1st and 2nd mortgages are owned by different outfits [even if they have the same mortgage servicing firm looking out for them].
if the house fails to sell at foreclosure for enough to pay off the first loan completely (the usual case in my area), the second mortgage is wiped out entirely and the buyer under the foreclosure takes the whole thing. In this case, the second mortgage's owner gets nothing from the house and has to chase you for his money.
now, if the second mortgage owner thinks there is more value in the house than the amount of the first mortgage, it/he may bid the amount owed on the first mortgage at the foreclosure sale [or just buy it from them pre-foreclosure].
in either event, you may be sure that the terms of the second declare it to be in default if the first goes to foreclosure.
{It is possible that the second owner already bought out the first owner and is planning to enter an opening bid equal to the first mortgage only. If that is the only bid, the first will take it and he'll get an immediate tax deduction for the balance due on the second -- it proved worthless -- while hoping that he'll later sell the house for more than the first and thus recover some of the funds. If he does, you'll still get nothing.}
2007-12-20 11:05:08 · answer #2 · answered by Spock (rhp) 7 · 0⤊ 0⤋
Because you have not paid on the loan.
The second is what it says a second. The second lender would be required to take the home back and the loan industry is not into home ownership. They would need to pay on the first mortgage and all the insurance etc.
If you want to save your home there are ways without refinancing.
2007-12-20 10:37:58 · answer #3 · answered by Big Deal Maker 7 · 0⤊ 1⤋
That loan takes precedence over all the others. Besides if they collect all the money they want why bother to go to court for any other money?
2007-12-20 10:36:09 · answer #4 · answered by Rich Z 7 · 0⤊ 0⤋
probably because this is the one your behind on???
2007-12-20 10:36:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋