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Old 02-19-2010, 09:03 PM
 
46 posts, read 67,270 times
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Quote:
Originally Posted by Bill Keegan View Post
No offense, but I don't think it matters WHO said it. A second mortgage is a loan secured by property. The lender has a contract that proscribes a remedy for non payment of that loan. Do you really think any lender would issue a 2nd mortgage if they needed to get permission to act according to their contract?
And the first wouldn't lose their position. Even if the 2nd initiates the action, the first gets paid first, The second collecting after that if there are sufficient proceeds.
every state is diffrent some are non recouse sates so ater a foreclosure they can not 1099 you for the balance. Some states can. NV is for now a recourse state and from what i understand in april it will no longer be. it is also a non judicial state where the banks can just sell with out having to take you to court first. most 2nd are unsecured debt should you file a BK they would get zip!
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Old 02-19-2010, 09:22 PM
 
Location: Martinsville, NJ
5,895 posts, read 6,849,120 times
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Quote:
Originally Posted by ashmere View Post
every state is diffrent some are non recouse sates so ater a foreclosure they can not 1099 you for the balance. Some states can. NV is for now a recourse state and from what i understand in april it will no longer be. it is also a non judicial state where the banks can just sell with out having to take you to court first. most 2nd are unsecured debt should you file a BK they would get zip!
That's not true either. You should be careful about giving advice on a subject about which you've heard a few things but clearly don't understand.
A 2nd mortgage MAY be treated as undecided debt in a chapter 13 banckruptcy proceeding if the value of the house is less than the amount outstanding on the first mortgage. That does not make it unsecured debt in all, or even most, cases.
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Old 02-19-2010, 10:15 PM
 
Location: Henderson Nevada
4 posts, read 4,069 times
Reputation: 11
certainly can foreclose. The question, though, is whether it makes any sense for them to do so. You see, the second mortgage holder would have to in order to do so. IF the amount of the first and second mortgages combined is close to the value of the property, it probably wouldn't make any sense for the second mortgage holder to foreclose -- there would be a good chance that the property would bring less than its value at a foreclosure auction, resulting in a loss to the second mortgage holder.
on the other hand, there could be alot of real equity in the property. In such a case, a second mortgage holder would be more inclined to foreclose -- there'd be a pretty good chance that they would get their money back and then some. Just saying..................... my 10 cents
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Old 02-19-2010, 10:25 PM
 
46 posts, read 67,270 times
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as i stated before it matters dependant on the state.... now i know not every attorney knows everything and i never claimed to have either but i see that you are a realtor, so i guess that means you know far more than an attorney. I am not here to argue with you you stated i should know more on the topic i advise on....i can say the same about you. you are only saying the exact opposite of what i have said and perhaps we are both wrong but like i said from what i understand it is state by state law i see no federal law to supercede the sates individual laws. again i could be wrong this is just what i have researched i suggest any one that has questions seek the advise of a prfessional.
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Old 02-25-2010, 08:34 AM
 
1 posts, read 1,865 times
Reputation: 10
Default Be careful!

You need to make sure you're getting information from LOCAL, QUALIFIED foreclosure prevention specialists (non-profit housing counselors). Some of the information listed on this page is NOT CORRECT.

1. In MN, the process for a second mortgage (and any/all junior lien holders) to foreclose on your property is the same as the first. However, if the process cannot be avoided, in many cases junior lien holders won't see a dime from the proceeds at the foreclosure sale.

2. MN is a non-recourse state. This means that, if the foreclosure sale proceeds do not cover the outstanding amount of your mortgage, the FIRST lien holder is wiped out. They have NO recourse... HOWEVER, this is NOT true of any junior (second) lien holders. They CAN, and in many cases WILL, sue you for outstanding amounts:
Moderator cut: Links to blogs are NOT allowed

3. Be careful with any offer your second may make for a "Discount Payoff" on your second mortgage:
Moderator cut: Links to blogs are NOT allowed


Basically... MUCH OF WHAT YOU'VE READ HERE is NOT SOUND ADVICE!

Please... speak with a local, certified, non-profit foreclosure counselor as soon as possible. Moderator cut: No advertising or soliciting allowed on this site!



Quote:
Originally Posted by bgidget15 View Post
We are considering letting our house go into foreclosure. I know the process for a 1st mortgage but I don't know if the process is the same for a 2nd. We haven't completely made the decision yet and I don't want to tip either company off. Does anybody know what the process is for 2nd mortgage foreclosure in Minnesota?

Last edited by Green Irish Eyes; 02-25-2010 at 10:33 AM..
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