Tags: mortgage
This entry was posted on Saturday, October 10th, 2009 at 2:01 pm and is filed under 2nd mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
can an overdue 2nd mortgage put home in default if 1st mortgage is timely?
Tags: mortgage
The 2nd mortgage is secured by the property just like the 1st mortgage. The only difference is that it is in the 2nd position behind the 1st mortgage, which means the 1st mortgage gets paid off first should they foreclose.
If the 2nd mortgage is held by the same lender is the 1st mortgage, they will just foreclosure on both if you do not work something out.
If the 2nd is held by different lenders, generally the 1st mortgage holder will begin proceedings on the 1st mortgage after they are notified by the 2nd mortgage holder that you are in default and moving to foreclosure.
Call, call, call, and call them again and try to work something out. If it’s an Equity Line, most are 20 year notes. Maybe they will modify it to a 30 fixed, versus a 20 adjustable.
If the 2nd mortgage is already in default, it’s too late to refinance.