[A P]

I have an investment property that I rent out to a tenant in Georgia. I currently am up to date on my first equity line that I have out on the property, but my second line has become past due by almost 30 days and lender has put a hold on the account. Even when I try to make payments on the account they do not let me due to some reason. I have consulted with others who have loans from this lender and they say that a freeze has been placed on their accounts as well (approx 30 others). In the event that that I am unable to pay the loan in its entirely if recalled by the lender or if the lender does not accept payments causing it to go into foreclosure, how will this affect my first mortgage, tenant, and me personally. Can I just allow it to be foreclosed and wash my hands of it, taking the hit on my credit? Or can the lenders sue me for anything? Also if the bank does decide to foreclose will that require me to pay any type of legal fees?

[Bibs]

Read your 2nd mortgage. Then read the first mortgage. If you still need help, see an attorney.

[MIND THE GAP]

Consult an attorney. In some states if the lender sells the property for less that is owned them, they can get a judgment aganist you for the difference.

[clojel]

A second mortgage holder is in second place behing your first mortgage holder. What that means, in most instances, is that they can't foreclose on you without the permission of the first mortgage holder. If you have been paying your first mortgage current, it is unlikely that your first mortgage holder would consent to a foreclosure. Therefore, it is unlikely that you (or your tenant) will be forced to leave your house.

The second mortgage holder, can of course, seek the money through alternate legal proceedings.

If you continue to fail to pay (or they won't accept the payments) your second mortgage holder, it would be wise to contact an attorney who can work out some payment arrangement with you and your lender. The bank is likely to be very responsive to a negotiation since they understand that they will likely be unable to foreclose on your house.

Good luck.