Can a second mortgage holder force a foreclosure?
Question:
Answer:
The answer is yes. You need to talk to the 2nd mortgage holder and come to an understanding about making payments. Since foreclosures are up and house values are down, the mortgage holder does not really wish to foreclose.
What did you do borrow the money and blow it on triffles?
yes, as long as you refinace the house before you post it you shoud be fine
Yes, you can be foreclosed on. however, banks and other lenders have become a little more leniant these says because of all the "creative" financing for mortgages lately. You should be able to refi and buy yourself some time.
Yup! The 1st mortgage holder will get paid first out of the foreclosure sale, but the 2nd mortgage holder can initiate the foreclosure. If the house is worth more than you owe, you are better off to sell it, even if you have to give up some of your equity. Foreclosure is a nightmare.
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YES: I have held many second mortgages, if you don't pay me I foreclose. I have to pay the First position mortgage, MOST TIMES THEY PERMIT ME TO TAKE OVER THE PAYMENTS, until I find a buyer.
In all of my second mortgages, I have a clause that increases the cost to the borrower by 200% to 300% times the rate of the original mortgage. IT SAYS THE FAILURE TO PAY THE MONTHLY PAYMENT SHALL CARRY THAT PAYMENT FORWARD AT THE RATE OF 1.85% per month, until paid.
By carefully explaining this to the borrower, most people get my second mortgage paid off as soon as possible.
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