2nd mortgage foreclosure

[jpneese]

What is the name of your state? Florida

My husband and I owned a second home in FL (we live in Ga) We had renters that wanted to purchase the home but could not get the full amount through a first mortgage so we took out a 2nd mortgage for 10,000 so they could purchase the home. They are now 3 months behind and when we call them all they give are excuses and promises to pay. What is our legal recourse since we hold the 2nd mortgage? What is your advice, should we just wait until they build up equity or should (and can) we start foreclosure proceedings on them? We do not know if they are paying the first mortgage or not. How can we find out if the 1st starts to foreclose on them?

[HomeGuru]

Originally Posted by jpneese

What is the name of your state? Florida

My husband and I owned a second home in FL (we live in Ga) We had renters that wanted to purchase the home but could not get the full amount through a first mortgage so we took out a 2nd mortgage for 10,000 so they could purchase the home. They are now 3 months behind and when we call them all they give are excuses and promises to pay. What is our legal recourse since we hold the 2nd mortgage? What is your advice, should we just wait until they build up equity or should (and can) we start foreclosure proceedings on them? We do not know if they are paying the first mortgage or not. How can we find out if the 1st starts to foreclose on them?

**A: my advice would have been to send a default and demand to cure letter at month 1. Then file to foreclose on the second immediately. Contact the first mortgage lender to inquire. They will be served a copy of the foreclosure complaint as third party Plaintiff.

[jpneese]

Florida

Ok, we took your advice and sent a default and demand to cure letter and put the date as Feb 10 for the due date. What is our next step..if they don't pay by the date on the letter...should we get a lawyer next or is there anything else we can/should do ourselves before hiring an attorney? We figure we will probably never see our money since we hold the second mortgage but how much should we plan to spend (guesstimation!) to get them out?!?!
Thanks for any advice...

[HomeGuru]

Originally Posted by jpneese

Florida

Ok, we took your advice and sent a default and demand to cure letter and put the date as Feb 10 for the due date.

**A: that date may or may not be enforceable. Read the terms and conditions of the mortgage.
*********
What is our next step..if they don't pay by the date on the letter...should we get a lawyer next or is there anything else we can/should do ourselves before hiring an attorney? We figure we will probably never see our money since we hold the second mortgage but how much should we plan to spend (guesstimation!) to get them out?!?!
Thanks for any advice...

**A: stop playing lawyer and hire one. If there is enough equity in the property, foreclose and get your money.