By Admin on Feb 27, 2009 in Renting & Real Estate
my brain hurts asked:
Do the 2 companies duke it out? Or does the former homeowner have to strike a deal with the company that held the second mortgage?
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Do the 2 companies duke it out? Or does the former homeowner have to strike a deal with the company that held the second mortgage?
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1st takes ownership. 2nd becomes unsecured, and theoretically can sue the debtor for the deficiency.
zeuz | Mar 2, 2009 | Reply
without reading the paperwork, or knowing which state this is in, my bet is that the terms of your second mortgage prohibit this without their consent.
it may be that the second mortgage company would then have the option to buy out the first and thus take the house. They also might have the option to immediately sue you for the amount owed.
are you also planning to file for bankruptcy? you might need a BK attorney before this is over.
Spock (rhp) | Mar 4, 2009 | Reply
The second will follow you out. The first does not “duke it out”, you simply have to continue paying the second.
Landlord | Mar 6, 2009 | Reply