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Know Where You Stand With a 2nd Mortgage Foreclosure
from:Most people have a mortgage on their home. Some people even have a second mortgage. You can have a second mortgage at the same bank as your first or you can have it at a different bank. Most people that have second mortgages have them at a different bank. People get second mortgages for different reasons. They may have excess debt they want to pay off or they may need the money to catch up on their first mortgage. Perhaps they are using the money for remodeling or to take a long-awaited vacation. Whatever the reason, many people choose to take out a second mortgage on their home. Unfortunately, if you can’t make the payments on your second mortgage, you can have a 2nd mortgage foreclosure the same way you can on your first mortgage.
Many people misunderstand the 2nd mortgage foreclosure and how it works in reference to the 1st mortgage foreclosure. Any time there are two mortgages on your home, the first mortgage always takes precedence over the second mortgage. The same is true with a 1st and 2nd mortgage foreclosure. Some people misunderstand what this means. They feel that since their first mortgage takes precedence over their second mortgage, they don’t have to worry about staying current with their second mortgage as much as their first. They couldn’t be more wrong with their thinking.
If you become delinquent on your second mortgage, the lender can initiate 2nd mortgage foreclosure proceedings against your home. You can lose your home even if you’re current on the first mortgage. When a home becomes foreclosed, it is repossessed and usually sold at auction to the highest bidder. If your second mortgage is in default and you lose your home to a 2nd mortgage foreclosure, the first mortgage will still take precedence. When your home is sold as a result of the foreclosure, the proceeds will go to the lender of the first mortgage to cover the balance that is due to them. Whatever is left will go to the lender of the second mortgage to pay them what you owe them. If there’s any money from the proceeds left after paying both mortgages, late charges, legal costs and other fees, the balance will go to you.
It’s important to understand the seriousness of a 2nd mortgage foreclosure so you know you rights and what to expect. If you find yourself in a foreclosure situation with either mortgage, it’s to your advantage to contact an attorney for advice. However, it’s more important to contact your lenders when you first begin having financial difficulties. This may help you avoid a 1st or 2nd mortgage foreclosure.
Mortgage Foreclosure Laws News
Ally Financial: Newly Released Letter Show Scope Of Possible Mortgage Screwups - Huffington Post
Ally Financial: Newly Released Letter Show Scope Of Possible Mortgage Screwups Huffington Post It also puts a number on some of the mortgages the bank may have handled incorrectly. Some highlights: GMAC started foreclosure proceedings on 1270 borrowers who were in some stage of the bankruptcy process, and thus should have been protected from ... |
Colorado AG requests lawyers' documents from four county trustees - Denver Post
Colorado AG requests lawyers' documents from four county trustees Denver Post By David Migoya Mortgage fraud investigators with the Colorado Attorney General's office have gathered documents filed with at least four county public trustees' offices by some of the state's largest foreclosure law firms, according to several people ... |
USDA Is a Tough Collector When Mortgages Go Bad - Wall Street Journal
 Wall Street Journal | USDA Is a Tough Collector When Mortgages Go Bad Wall Street Journal After foreclosure, the USDA can go after unpaid balances, even in states that limit such actions by private lenders. A USDA spokesman says the agency follows all federal and state laws. The Treasury Department collected $45 million in delinquent USDA ... |
Arizonans sue to block mortgage fund raid - Yuma Sun
 Arizona Capitol Times | Arizonans sue to block mortgage fund raid Yuma Sun Tim Hogan of the Center for Law in the Public Interest said the state was given $97 million as part of a nationwide settlement of a mortgage fraud claim against five major lenders. He said the part of the deal signed by Attorney General Tom Horne ... Foreclosure-prevention efforts bog down Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds Lawsuit challenges Arizona use of foreclosure settlement money |
Frustrated borrowers seeking mortgage help - MarketWatch
Frustrated borrowers seeking mortgage help MarketWatch At the time, it was not quite underwater, but there was no money to pay the mortgage. I tried to contact the lender to turn over the property, giving the company the deed to the property in lieu of an eventual foreclosure because there was no money to ... |
Calif. homeowners with foreclosed second mortgages targeted by firm - News10.net
 News10.net | Calif. homeowners with foreclosed second mortgages targeted by firm News10.net By Rick Jurgens 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. Texas firm targets Calif. homeowners with foreclosed 2nd mortgages |
Mortgage settlement money diverted to boost state budget - AZFamily
 Sun-Sentinel (blog) | Mortgage settlement money diverted to boost state budget AZFamily by Meredith Yeomans PHOENIX -- From long lines for mortgage help, to foreclosure signs in front yards, it's obvious Arizona homeowners are still struggling. That's why it was welcomed news when, in February, the state announced it would get nearly $98 ... Ask a real estate pro: Mortgage settlement prompting banks to make deals Judge asked to block state mortgage bid |
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 ... |