Claude Ellesmere asked:




Ever since the bottom fell out of the real estate market a couple of years ago people have been running into trouble trying to keep up with paying for all of the financing that they may have taken out over the past decade on their current property. With home values dropping significantly, people from all across the country have been finding themselves “upside-down” in their homes and thus owing more than what the property was actually worth. The foreclosure rate across the nation has been rising significantly ever since this trend began to take effect, and many homeowners are left not knowing what to do when they have a second mortgage or home equity loan that they know that they cannot afford.

The good news is that you shouldn’t lose your home if only your second mortgage cannot be paid, and as long as you keep paying your first mortgage you should not worry about going into foreclosure. What typically happens when you cannot pay any secondary, or even tertiary mortgages involves a direct negotiation and settlement with the lender that holds the loan, and it is a rare occurrence for you to ever have to go into foreclosure.

The bank knows that if you cannot pay your first mortgage and your property does go into foreclosure that they will hold second position to the lender that holds your first mortgage, and they will thus only receive money that is leftover after the first mortgage gets paid off. They obviously don’t want this to happen because they can easily be left with nothing after the property is sold off, and it is thus in their best interest to work with you directly so that you can both come to some kind of agreement.

Dora

endlesstime20 asked:


I have a 1st and 2nd mortgage loans on my condo. The balance on my loan is more than the value of my condo. The loan on my condo is only on my name. If I purchase a new home with my parents (let’s say I can get the loan approve) and default on the loan on my condo…..can the lender go after my new home to recover their lost or 1099 me? Thanks in advance.

Adam