Question:

What happens with a 2nd mortgage foreclosure?

Answer:

The second lender has the full right to initiate a 2nd mortgage foreclosure if you are not current with the second mortgage and even if you are in a very good standing with your first mortgage. The good news is that the first lender can choose to buy the second mortgage, or the second lender may choose to buy the first mortgage. In any case, it is a lot better to have your home loan with one lender as long as the combined loan balance does not exceed property value.

If you are threatened with a 2nd mortgage foreclosure, you may like to hire a real estate lawyer to help you protect your equity since a 2nd mortgage foreclosure can take your home as it has lien on it. At foreclosure sale, the first mortgage will be paid off first, and the 2nd mortgage comes second - if there is enough left, the 2nd mortgage company will like to pay the first mortgage company and will get the 2nd mortgage paid off.

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Common misspellings: mortage and morgage