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Old 12-21-2011, 01:14 PM
 
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Trying to find out that having a first and second mortgage,if the first one is current and the second one is being paid but was a few months late at one time and now finding it difficult to keep up the payments on the second one,What kind of legal action does the second mortgage company have as to wether or not they can start or do any foeclosure procedures?
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Old 12-21-2011, 05:11 PM
 
2,362 posts, read 4,635,394 times
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Quote:
Originally Posted by samson33 View Post
Trying to find out that having a first and second mortgage,if the first one is current and the second one is being paid but was a few months late at one time and now finding it difficult to keep up the payments on the second one,What kind of legal action does the second mortgage company have as to wether or not they can start or do any foeclosure procedures?
after 90 days they can start procedures ... Pay up or SELL ....
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Old 12-21-2011, 06:55 PM
 
Location: Albrightsville PA
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yep, they can and will forclose on your house if you don't pay the 2nd mortgage. If you can, refinance, rates are really low right now. Or speak with the bank about a loan modification. depending on the bank, your situation, and your income you may be able to get a loan modification either temp one or perm.
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Old 12-22-2011, 02:58 PM
 
Location: New York
2,251 posts, read 4,544,946 times
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Quote:
Originally Posted by samson33 View Post
Trying to find out that having a first and second mortgage,if the first one is current and the second one is being paid but was a few months late at one time and now finding it difficult to keep up the payments on the second one,What kind of legal action does the second mortgage company have as to wether or not they can start or do any foeclosure procedures?

I don't your your details, working with a similar case right now,

Is there a different bank for the 2nd mortgage?

99% of the time when a 2nd mortgage is saying they can foreclose, it is all hot air!!! The worst they can do is file a civil judgement, which usually takes more than a year. Though a couple of years ago I did hear of one case in Texas where a 2nd lender actually initiated the foreclosure. Because they were also late on the 1st. This rarely happens

Why? They are in 2nd lien holders position to your title. Because your 1st mortgage is on time, the 1st lender is not going to let the 2nd lender foreclose because the loan amount is larger on your first mortgage.

The case I am working on right now - they're on time with a 6.5% 1st mortgage, but have a 10.5% 2nd mortgage two months late. They are getting the same type of calls your getting.

I told them - no one can tell you to go late because it will subject your house to foreclosure and lower your credit score. Presenting their options - with one lender holding both 1st and 2nd.

First - they could attempt to lower the 2nd, probably getting a couple of points knocked off the interest rate. Because they are behind, the missed payments go back into the loan. Seeing hardly any relief.

Second - if they go late on the 1st, then modifying the 1st mortgage payment to 31% of their income. Because of the importance of making the first mortgage into an affordable payment, the interest rate on the 2nd is greatly reduced.

Third - if they go late on the 1st, modifying the 1st mortgage payment to 31% of their income. Then presenting a lower settlement offer to totally get rid of the second mortgage altogether. That was their best option.




.
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Old 12-22-2011, 04:57 PM
 
Location: Albuquerque
5,548 posts, read 14,818,312 times
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Quote:
Originally Posted by samson33 View Post
... having a first and second mortgage, ... ?
Are you over or under water?

Often times, the 1st mortgage balance is larger than the value of the house.
It is also quite possible that the interest rate is higher on the 1st than the 2nd.

It might be possible for the 2nd lienholder to add your nonpayments to the
balance and go from there. I've never tried this, but it might be possible.

I've got a second with a few thousand credit line that I could
use if I wanted to, but that might not be applicable here.

Quote:
Originally Posted by pocopc View Post
yep, they can and will forclose on your house if you don't pay the 2nd mortgage.
If the house has positive equity. We don't know that. The housing crash
has rendered many 2nd notes worthless if they are not being paid.
Quote:
Originally Posted by pocopc View Post
..,. depending ... you may be able to get a loan modification either temp one or perm.
The OP said they were current on the 1st so no loan mod for them.
Besides, loan modifications are a fairy tail.

Last edited by mortimer; 12-22-2011 at 05:05 PM..
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