which law covers a second mortgage loan after a foreclosure?
Deal Score0
my home went through forclosure and was sold. I had a second loan on the house and the loan company sent it to a collection agency to try and collect. I believe there is a law that would prevent them from being able to collect on the second.
I have not heard of no new law. If there was enough equity after it was sold, they need to pay the second mortgage. This would be something to check into.
Nope, there isn’t. The first can ALSO try to collect the difference between what the house sells for at auction, and the loan balance PLUS foreclosure fees. And there WILL be hefty foreclosure fees.
it’s called contract law. you took out a loan and signed an agreement to pay back the $ $ . if you don’t they can’t foreclose on the home because you already lost that. the loan was “secured” by the home, which just shows the extent of the current mortgage disaster.
all that stuff rolls downhill, affecting the entire economy
IN most states, the law is simple;
when the foreclosure sales comes up,
and there are two notes on the property
[or even 3, 4 or however many], the junior
lien holder must pay off the first mortgage
to save his position or he loses all.
The jr lien holder can, if the house sells for more than the first mort., petition the
court for the excess.
The property owner is not liable
for any loss to the 2nd lien holder.
[in all the states as far as I know]
than the first mortgage,
I’m carefull not to get thrown off here while I try to help others (wow) But, Bush passed legislation about negotiating a short pay and no tax applicable – that is not really your deal as you are n default. First, so what, it happens. Second, you have a deficiency judgment against you by the lender and they knonw that is not allowed. There is a legitimate and proven technicality the lenders do not want you to know about. Wake up America, These guys are predators and you don’t see it! get me at msoliman@borrowerhotline.com
Hi,
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