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Foreclosure On 2nd Mortgage Article
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Foreclosure of Second Mortgage Is As Serious As a First Mortgage Foreclosure
from:Most young people, as well as old people, have a mortgage on their home. With the prices of homes at an all-time high, very few people can pay cash for their home like they did many years ago. Some people even have a second mortgage on their home. A second mortgage is not a lot different from a first mortgage, but a foreclosure of second mortgage can be slightly different from a first mortgage foreclosure. The results, however, are the same-homeowner losing part of their home- with a foreclosure second mortgage or first mortgage.
Some people have not even heard of a second mortgage or don’t understand why a person would have two mortgages on their home. There are a few good reasons. With economy as it is today, many people have difficult time saving money. This makes it difficult if an unexpected expense comes up that requires cash. Or perhaps you want to take the family on that long awaited vacation, but don’t have the cash. Most people have equity on their home above and beyond what they owe on their mortgage so they borrow money against their home. For instance, if their home is appraised at $100,000 but only owe $50,000 on their mortgage loan, they have around $50,000 of clear equity. Many people take out a second mortgage using the equity on their home as collateral.
While this helps them at the time, it may cause problems later if they can’t make their payments and the home goes into foreclosure. The first mortgage always takes precedence over the second in a foreclosure. Second mortgage will get what’s left after the first mortgage is satisfied. Many people understand the concept of what is meant by “first mortgage taking precedence over second mortgage”. If they have financial difficulties, they feel they can let their second mortgage fall behind as long as they keep up their first mortgage.
What they don’t realize is they can still lose their home through foreclosure. Second mortgage loans have the same legal rights as first mortgage. If you fall behind on your second mortgage, they can sell foreclose your home and sell it. The only difference is that the first mortgage company will get their money first and then the second mortgage will get what’s left. Often is a situation like this the first mortgage company will offer to buy out the second mortgage or vice versa so there is only one mortgage. Whichever company buys out the loan comes out ahead because they now have only one mortgage.
You now understand the importance of paying both mortgages on time. A foreclosure of second mortgage can have the same ramifications as a first mortgage. You lose your home and good credit.
Foreclosure On 2nd Mortgage News
Firm Targets Calif. Homeowners With Foreclosed 2nd Mortgages - KGTV San Diego
 abc7news.com | Firm Targets Calif. Homeowners With Foreclosed 2nd Mortgages KGTV San Diego SAN DIEGO -- Adding new uncertainty in the state's ongoing mortgage crisis, a Texas company is aggressively pursuing hundreds of Californians to collect second-mortgage debt -- on homes they've already lost through foreclosure. Firm targets CA homeowners with foreclosed 2nd mortgages |
REAL ESTATE: Texas firm targets homeowners with foreclosed 2nd mortgages - Press-Enterprise
 Press-Enterprise | REAL ESTATE: Texas firm targets homeowners with foreclosed 2nd mortgages Press-Enterprise Oscar was sued by Heritage Pacific Financial in an effort to keep a bankruptcy judge from discharging, or erasing, an $88000 second mortgage note against the house Trejo lost through foreclosure in 2008. Trejo won but HPF has appealed. Texas firm targets Calif. homeowners with foreclosed 2nd mortgages |
Texas company targets foreclosed owners' second loans - San Francisco Chronicle
Texas company targets foreclosed owners' second loans San Francisco Chronicle A Texas company that is aggressively trying to collect second-mortgage debt from hundreds of Californians is facing a class-action suit in Santa Clara County that contends it is carrying out an "insidious and illegal debt collection scheme. |
Letter: Some law firms refuse settlements that can avoid foreclosure - TCPalm
Letter: Some law firms refuse settlements that can avoid foreclosure TCPalm Just when it seemed the foreclosure crisis was finally beginning to correct itself, a new form of fraud has emerged. It involves some of the law firms that represent second-mortgage holders. To the credit of many of the major banks that hold the first ... Scottsdale, Arizona Short Sale Realtor / Specialist |
Foreclosure victims sued - ABC7 investigation - abc7.com
 abc7.com | Foreclosure victims sued - ABC7 investigation abc7.com The company says California law allows them to collect on second mortgages where they can prove borrowers committed fraud. Several years ago with the housing market in panic, Heritage Pacific bought 40000 second mortgage notes on foreclosed homes in ... Foreclosed? That May Not Be the End of It |
Foreclosure inventory spikes; N.J. 2nd in U.S. - Dailyrecord.com
Foreclosure inventory spikes; N.J. 2nd in U.S. Dailyrecord.com New Jersey's percentage of home mortgage loans in foreclosure continues to rise, even as rates nationally have fallen to the lowest level since 2008, a report released Wednesday showed. New Jersey now has the second-highest percentage of mortgage loans ... |
Frustrated borrowers seeking mortgage help - MarketWatch
Frustrated borrowers seeking mortgage help MarketWatch What passes for mortgage re-modification is a travesty of an already broken financial system. —MS Lew: And lenders are just plain dumb to boot. In May 2010, by brother died. He had a first and a second mortgage with a single lender. |
STUDY: One In Three Homeowners Owes Bank More Than Home Is Worth - Huffington Post
 Orange County Breeze | STUDY: One In Three Homeowners Owes Bank More Than Home Is Worth Huffington Post Whereas previous estimates rely on public record of home loans, Zillow partnered with credit rating agency TransUnion to get information about second mortgage loans and the portion of the loans that had been paid down, according to the Wall Street ... Negative Equity More Widespread Than Previously Thought, Report Says |