2nd Mortgage foreclosure (real estate, second mortgage, refinance) - Atlanta - Georgia (GA) - City-Data Forum

elaiken · 01-03-2010, 04:27 PM

I need an answer please. 12 years ago, my mother , husband and I pruchased a townhouse together with my mother and my husband being the only ones on the Mortgage. At closing we did a quick claim deed so that in the event of my mothers death, my name would go on the deed so that my husband ( at the time we were not married) could not sell the house without me, and if in the death of my husband, my mother could nto sell with out me. Three years ago, my mother applied for and was approved for a home equity line of credit to make renovations to the home. My husband had to sign paperwork staing he was aware and allowing her to get the line of credit. My mothers name is the only name on the 2nd mortgage. Two years ago she passed away, we envoked the quitclaim deed and had her name removed from the deed and the main mortgage. We currently are facing not being able to pay the 2nd mortgage and am wondering what will happen if we get too far behind? Can we stand to loose the house?

Iconographer · 01-03-2010, 05:24 PM

If it is indeed a secured note and you default, yes. The second mortgage holder will notify the first of its' intent to foreclose, and the primary mortgage holder (being the superior lien in this case) will be forced to initiate foreclosure proceedings as well.
Your best bet is to notify all lienholders of the situation and see if they will work with you. It is possible you could refinance the first mortgage to get rid of the second.

noah · 01-03-2010, 05:33 PM

If you owe more then the home's value it would be unlikely the 2nd would start foreclosure as it would be costly for them and they would stand to get anything.

However if you do not intend to pay the 2nd at anytime in the future eventually something will happen to you and both the 1st and the 2nd of course can come after you for the difference of what they sell the house for after foreclosure and what you owed so sooner or later you'll have to face it.

elaiken · 01-03-2010, 05:49 PM

I am current with the first and have not missed nor been late on a payment in 12 years. Im about 3 weeks behind on the 2nd but they wont discuss that account to work out anything. Can not qualify for re-fi. Jus tdont want to be forced out of home.

Iconographer · 01-03-2010, 06:00 PM

Quote:

Originally Posted by elaiken

I am current with the first and have not missed nor been late on a payment in 12 years. Im about 3 weeks behind on the 2nd but they wont discuss that account to work out anything. Can not qualify for re-fi. Jus tdont want to be forced out of home.

Nor do many mortgage companies care to be in the real estate business these days. Considering the shape that the country is in right now, banks are being remarkably flexible. I urge you to give it a try, especially considering that you have a good payment history.