By Admin on Sep 29, 2008 in Renting & Real Estate
Woody asked:
has anybody here lost a house to forclosure or “short sale” and had borrowed money on the house?
has anybody here lost a house to forclosure or “short sale” and had borrowed money on the house?
If you did, what happens to the second loans?
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If the first mortgage loan forecloses, and the second mortgage lien holder does nothing, the second lien is wiped out. Understand, the debt is not wiped out, just the lien or collateral. The 2nd lien holder could still sue and try to recover that way – assuming the loan is not ‘non-recourse’ debt. I am a 2nd mortgage lender that lost a lien to a foreclosing 1st mortgage because I chose not to throw good money after bad. I walked away from a 20K note balance rather than pay on a 400K 1st mortgage and start my own foreclosure. I happened to choose not to sue the guy because he was already a train wreck and I wouldn’t be able to collect anyway. Oh well – easy come, easy go. Hope this helps. Contact me if you need more info.
Tony D | Oct 2, 2008 | Reply
Goes away just like the people who lived their…
Gerald | Oct 5, 2008 | Reply
Great post! I completely understand your question. Money is hard for a lot of people right now since the enconomy is going down. My friend told me about this website of an organization that gives people up to $1500 towards their rent or mortgage. It’s available in most areas, so I think you should check it out.
Hope this helps!
Claude C | Oct 5, 2008 | Reply
Great post! I completely understand your question. Money is hard for a lot of people right now since the enconomy is going down. My friend told me about this website of an organization that gives people up to $1500 towards their rent or mortgage. It’s available in most areas, so I think you should check it out.
Hope this helps!
PHILIP R | Oct 9, 2008 | Reply