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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?
You lender holding your 2nd doesn't have any recourse - because they are behind the 1st mortgage in lien holders position.
A few weeks ago on one of my files - lady owed $79k on her 2nd mortgage. Her lender agreed to a settlement of $9k. She is begging, borrowing, pleading to come up with the money. Spoke with her yesterday, it looks like it is going to happen.
Another case - a lender agreed to a lower amount and has reduced payments, similar to what what her lender in 1st mortgage is doing.
I am seeing more and more on completed files, on lenders holding 2nd mortgages are agreeing to settlements, lowering the principle..
Going into foreclosure - you can expect your credit score to drop 200 to 400 points, and remain on your report up to 10 years. It's a snow ball effect - it's an easy way out of your existing debt. You will get to the point where you need help, and no one will help you....
It is sad to hear of a person giving up and losing their home to foreclosure. There are other options you can do now, that you will regret you didn't do later....
I am not licensed in your state - advise you to seek out legal assistance with someone who has experience with your lender and state laws in Minnesota. Doing so in the short term, will save you major dollars in the long term...
Good Luck..
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Last edited by Modification Specialist; 02-16-2010 at 02:54 PM..
My first lender has been dragging their feet for 6 months on modifying my mortgage they say they will send something, they never do, have me jumping through hoops to no avail and then they start all over.
My second lender refuses to modify the 2nd mortgage because they are not required to by the state. Gotta love that.
We have just come to point where there is no more money to beg, borrow or steal, we have been doing that for about 2 years. Peter has no more money to give to Paul.
My credit has taken such a huge hit in the last year, dropped about 200 points already. We are just at wits end as to what to do.
Thank you for the information and for the link to the website.
...My second lender refuses to modify the 2nd mortgage because they are not required to by the state. ....
I see right through that statement - they are telling you anything will you believe, because they know you will accept that. They are making it up about the state law......
The fact is no lender across the country is required to do a modification, including the ones who received government bail out money. The few lenders that did - the only requirement was for them to step up modification programs designed to help homeowners. I know of one lender in CA who set up a web site, the telephone number listed is to an answering service in India. Another lender (again in India), you call the customer sevice and they read off a script. When you question what they are saying, they start from the beginning.
To get around that, homeowners need to request in writing a negotiator here in the united states.
The first rule of negotiation - you need to realize any thing you say can and will be used against you. By you telling them your working on a modification of your first mortgage, they want to wait to see how much they are going to save you. You need to get them to understand - default is imminent unless they work with you. They need work out a settlement with you.
Again has I mentioned in my above post - your 2nd mortgage lender, all they can do you is mislead, lie, yell, trick, etc... They can't do anything because they would have to pay off the 1st mortgage before they could foreclosure upon you. I are doing them a favor by contacting them and trying to work things out....
I understand what you are going through, I speak to home owners everyday who are at ends wit. They did everything they were told to do, and end up being burned by their lenders. Again your lender is not your friend, they are trying to get as much out of you as they can.
As the value starts to return and people have equity in their homes. When it comes to foreclosers - banks could sell property's and make a profit to recoup loses. Because of value being so low across the country, the timing is now to negotiate a high payment loans. They would lose more if they foreclosed.
I also see right through the, let's call it what it is, BS. I just can't believe that they (both lenders) would rather have to foreclose than work with me, when I have told them that I will end up defaulting, but it appears that is the route they have chosen. I would think they would rather work with me than loose 2/3 of their investment or sit on it for years, but I cannot control what they do.
Thank you very much for all your advice and guidance. It has helped.
i know that the 2nd can not foreclose on the home with out permission from the 1st. and what 1st mortgage is going to do that!! i know a not for profit group that may be able to guide you thru the process. they fight the housing crisis all over the us. i know they host free webinars and phone consultations for advice guidance and assistance for people who are not in their area. all i know is that it is possible to postpone the sale on the property.
i know that the 2nd can not foreclose on the home with out permission from the 1st. and what 1st mortgage is going to do that!!
This is incorrect, certainly in NJ, and I believe in every state in the US. The second mortgage is in fact a loan collateralized by the real estate. If you don't pay that loan, the note holder may initiate forclosure proceedings, even if you have payed the first mortgage on time every month. They need no permission from anyone to do so. Occassionally, the frst mortgage holder will step in & purchase the second loan, to protect their interest in the first. But not always.
This is incorrect, certainly in NJ, and I believe in every state in the US. The second mortgage is in fact a loan collateralized by the real estate. If you don't pay that loan, the note holder may initiate forclosure proceedings, even if you have payed the first mortgage on time every month. They need no permission from anyone to do so. Occassionally, the frst mortgage holder will step in & purchase the second loan, to protect their interest in the first. But not always.
i actually attended a homeowners workshop and education seminar hosted by one of the most prestigous lawyers in las vegas. he is the one who passed along this information as i said they CAN do it but not with out permission from the first. and when you think of the logistics of that a first worth 300,000 is never going to let a 2nd worth 100,000 collect and the 1st loose out
i actually attended a homeowners workshop and education seminar hosted by one of the most prestigous lawyers in las vegas. he is the one who passed along this information as i said they CAN do it but not with out permission from the first. and when you think of the logistics of that a first worth 300,000 is never going to let a 2nd worth 100,000 collect and the 1st loose out
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.
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No you are not correct when talking about NV
