New foreclosure law regarding more than one mortgages?
I have a friend who is unfortunately being foreclosed on with three mortgages on a single residency. He has a senior mortgage and two junior mortgages. According to current laws, I was informed that it is possible to end the foreclosure by settling only the senior mortgage (Either by refinancing or short-selling) and the two junior mortgages would become irrelevant (Completely eliminated where the lenders would have to write-off the loan as a loss) so as long as we settle the first mortgage. Is this true or in any ways possible? The house is located in Queens, NY.
I have a client that owns a 2 family investment property in NY. His current balance is 511k. Client is in good standing with clean mortgage history. Bank calls clients and offers him a reduction of mortgage if he refinances the home. I called the bank and they state that they need to get the loan off their books and are willing to take the 385K if refinanced with another bank. Has anyone ever heard of that?
And how do you handle a restructured loan?