Although foreclosure rates have decreased over the past several months, it sometimes still happens. Most folks are aware that foreclosure can be filed for on a first mortgage, but what about a second one? The following will address the question “Can you be foreclosed on from a second mortgage?” to find out if this is possible, and if so, under what circumstances.
Phoenix, AZ -- (SBWIRE) -- 12/31/2012 -- For reasons of their own, many thousands of homeowners have taken out second mortgages on their homes to get the equity from it. The money may be used for repairs to the house or to help alleviate their debt burden. Lots of these people think that as long as the first mortgage is kept current, the second one cannot be foreclosed upon, but they are mistaken in this belief. “Can you foreclose on a second mortgage?” has a simple, straightforward response: Yes. Most lenders don’t want to go through with a second mortgage foreclosure, as it’s an expensive process. Lenders are often willing to work with borrowers to help them get their second mortgage caught up, so if it looks like one may be close to defaulting, contact the lien holder right away. It can sometimes be rather intimidating to speak to a lender personally, so one may want to obtain legal representation to do it for him. Check with the state or local bar association to find names of attorneys who specialize in real estate law if this is the case.
As stated above, “Can you be foreclosed on from a second mortgage?” has an answer. Yes, it can happen, and bankers or credit union financial personnel may take a hard stance toward second mortgage default. There is, however, a ray of sunshine in this seemingly rainy day: If the borrower truly has no reasonable options to repay the second mortgage, the lender may settle the debt for just pennies on the dollar. This is great for both parties, as it saves them both money. Often, the first mortgage holder buys out the holder of the second mortgage holder. It is advantageous for the first holder to own both mortgages. Also, if the homeowner sells his home for less than what is owed on the mortgage, it results in a deficiency balance for which he is held responsible. Sometimes a lender doesn’t go after the deficiency balance, and it gets rolled over into other unsecured debt which can be paid off by a debt settlement program in one large sum. A voiding Second Mortgage Foreclosure ,Request to Get More Info With Credit-yogi.com
Credit-yogi.com, an online marketing company is located in Pittsfield, Massachusetts, has more information about second mortgage foreclosure, and there is always a knowledgeable staff member available to answer questions.