which law covers a second mortgage loan after a foreclosure?

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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.

6 Comments
  1. Reply
    ladytoobusytotalk
    January 22, 2011 at 9:24 pm

    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.

  2. Reply
    mbrcatz17
    January 22, 2011 at 9:59 pm

    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.

  3. Reply
    noitall
    January 22, 2011 at 10:48 pm

    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

  4. Reply
    kemperk
    January 22, 2011 at 11:32 pm

    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,

  5. Reply
    borrowerhotline.com
    January 23, 2011 at 12:08 am

    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

  6. Reply
    Jennifer
    January 23, 2011 at 12:51 am

    Hi,
    I used “Credit Solution” to settle my debt and avoid foreclosure.They managed to reduce my debt up to 58% .It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
    http://doiop.com/543j44

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