| Mortgage Forclosure The forum for everything related to Mortgage Forclosure |
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08-20-2008, 04:02 AM
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If a person has a first and second mortgage and the...
...house goes to foreclosure what happens to the second mort?
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08-20-2008, 09:56 AM
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These are secured loans and it depends on the state. In some states it is possible that the mortgage company will sue the barrower for any dollar amount that is not recovered from the sale of the house. Otherwise the mortgage company reposes the house and sell it and pay back the loans.
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08-20-2008, 11:28 AM
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When the house is auctioned off, If it gets enough to pay off the first, the holder of the first gets that money. If there is anything left, the second gets paid. Otherwise he gets nothing. In CA if the mortgages are for purchasing the house, you can't sue for the deficiency.
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08-20-2008, 02:32 PM
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Re: If a person has a first and second mortgage and the...
Occupancy also becomes an issue in most states. If the property is not owner occupied or the borrower is solvent, the bank might 1099 you for the loss. You would much rather have a bank harassing you than the IRS.
Thomas Powell Author Loan Modification Made Simple |
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