Can a 2nd mortgage holder foreclose on a property?

Submitted by lrobbins45 from CA - 05/15/2009 - 1:34pm

I have a 2nd and a 1st on my home. I stopped making the payments in March and have not heard from the 1st, but have recieved a notice that the 2nd will foreclose on me if I don't make the payments. Can they do this? Will they be able to sell it and kick me out or do they have to wait until the 1st mortgage company does this?

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Comments

Submitted by Sean - 05/19/2009 - 10:21pm

Yes absolutely they can foreclose and evict you. And it may be a big benefit for you if they foreclose instead of the 1st if it wasn't a second you took at the time you bought the property. The reason being that a refi 2nd can continue to come after you for the amount due if the 1st forecloses, but they give up that right if they foreclose themselves.

Submitted by elaine - 05/20/2009 - 10:54am

Is it true that the 2nd lender can only come after the short sale seller if there is not specific verbiage from the bank that states the debt is discharged in full?

Submitted by lrobbins45 - 05/20/2009 - 11:52am

Thanks so much Sean, that helps me alot.

Submitted by Wendy - 08/24/2009 - 9:52am

Can the 2nd mortgage lender foreclose on a home if the 1st mortgage is still being paid? the family is just making ends meet to pay their first mortgage but have not been able to pay on their 2nd in over a year.

Submitted by Sean - 09/07/2009 - 9:48pm

Yes absolutely. The second mortgages debt is secured by the property, and if the owner fails to pay they are fully entitled to seek foreclosure to reclaim the property or force its sale to recover their debt.

Submitted by Brian - 02/25/2010 - 10:15am

What if the property is underwater so much that the property value is less than the amount of the first mortgage? Can the second mortgage still foreclose when there is no equity to even cover the first mortgage?

Submitted by veronica - 08/19/2010 - 7:33am

i completed a short sale on my property in feb 2010. the first mortgage wrote off the debt and the 2nd accepted 15000 for the approval. their is a balance with the 2nd mortgage. the 2nd reported me to the credit report agencies as foreclosed (FC). Can they do this?

Submitted by Sean - 08/19/2010 - 11:09am

I'd dispute it. Will be hard for them to prove something that didn't happen.

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