Can a soncond mortgage forclose if I am current on the first Mortgage?

[ashlexi]

What is the name of your state (only U.S. law)? Montana

I am current on my first mortgage but am having problems paying my second. I loset my job and there is nothing left in savings. I have tried to ask for a modification to lower the payment with no results. I so not qualify because we are not delinquent enough and so not have enough income comming in with only my Husbands job and unemployment. Any advice would help. Thanks

[HomeGuru]

Originally Posted by ashlexi

What is the name of your state (only U.S. law)? Montana

I am current on my first mortgage but am having problems paying my second. I loset my job and there is nothing left in savings. I have tried to ask for a modification to lower the payment with no results. I so not qualify because we are not delinquent enough and so not have enough income comming in with only my Husbands job and unemployment. Any advice would help. Thanks

**A: the answer is yes, The second mortgage lender has the same foreclosure rights as the first.

[HelpinMN]

second mortgage foreclosures get complicated. It all depends on how much the second mortgage wants to foreclose. In order to foreclose the second mortgage would need to buy out the first mortgage. Because to be honest the first mortgage couldn't care less about your status with the second mortgage. So if your first mortgage is 200k and your second is 12k I would be surprised if they were willing to shell out 200k to buy out your first. On the other hand if the first is 5k and the second is 100k then you might have a problem.

The end result is that the second post is correct in that they do have the same rights they just need to buy out the mortgages that have a higher subordination (not even sure if thats the correct usage of that word). So its kind of on a case by case basis.

[nextwife]

Originally Posted by HelpinMN

second mortgage foreclosures get complicated. It all depends on how much the second mortgage wants to foreclose. In order to foreclose the second mortgage would need to buy out the first mortgage. Because to be honest the first mortgage couldn't care less about your status with the second mortgage. So if your first mortgage is 200k and your second is 12k I would be surprised if they were willing to shell out 200k to buy out your first. On the other hand if the first is 5k and the second is 100k then you might have a problem.

The end result is that the second post is correct in that they do have the same rights they just need to buy out the mortgages that have a higher subordination (not even sure if thats the correct usage of that word). So its kind of on a case by case basis.

Ln this market, the jr lien holder can also often go to the first lien holder and offer to buy the mortgage- at a discount. Many lenders will take them up on it. So don't presume that the jr lien holder will need to filly pay off the prior mortgage.

[HelpinMN]

^^ that may be true but my original point stands. If the first is 20x what the second is they may still be able to buy it at a discount but then the second if exposing itself to a much greater liability to get the green to foreclose.

[HomeGuru]

Originally Posted by HelpinMN

second mortgage foreclosures get complicated. It all depends on how much the second mortgage wants to foreclose. In order to foreclose the second mortgage would need to buy out the first mortgage. Because to be honest the first mortgage couldn't care less about your status with the second mortgage. So if your first mortgage is 200k and your second is 12k I would be surprised if they were willing to shell out 200k to buy out your first. On the other hand if the first is 5k and the second is 100k then you might have a problem.

The end result is that the second post is correct in that they do have the same rights they just need to buy out the mortgages that have a higher subordination (not even sure if thats the correct usage of that word). So its kind of on a case by case basis.

**A: your response is not correct. There is no mortgage buyout needed in order for the second mortgage lender to file foreclosure.

[HomeGuru]

Originally Posted by HelpinMN

^^ that may be true but my original point stands. If the first is 20x what the second is they may still be able to buy it at a discount but then the second if exposing itself to a much greater liability to get the green to foreclose.

**A: your original point is not correct.

[HelpinMN]

Originally Posted by HomeGuru

**A: your response is not correct. There is no mortgage buyout needed in order for the second mortgage lender to file foreclosure.

Who is going to continue to pay the first mortgage if the second forecloses on it? I would assume that if you kicked out the owner without making a deal with the first they would be pretty upset. Especially they don't care at all if you pay your other debts as long as you pay them.

It is entirely possible that I may be incorrect in my answer I am just thinking back to my lending training back when I worked for a bank in college.

[HomeGuru]

Originally Posted by HelpinMN

Who is going to continue to pay the first mortgage if the second forecloses on it? I would assume that if you kicked out the owner without making a deal with the first they would be pretty upset. Especially they don't care at all if you pay your other debts as long as you pay them.

**A: details not relevant to the answer to the post title.

########
It is entirely possible that I may be incorrect in my answer I am just thinking back to my lending training back when I worked for a bank in college.

**A: please note that this is a legal advice website. Information provided by contributors need to be correct. Either your memory has failed in your thinking back to your lender training days when you worked for a bank in college or they trained you with erroneous information.

[JudyH608]

I don't have the answer, but I would advise to start with your local government agencies about homeless prevention. If nothing else one of those agencies should be able to tell you what to do to keep out of foreclosure, and the services they would provide by contacting your mortgage company on your behalf to try and get a workable resolution.

These were only a couple that I found when I googled "homeless prevention Montana" though you would have better luck with adding your city name, Montana.

Intergovernmental Human Services Bureau of the Department
of Public Health and Human Services (DPHHS) in Montana

Emergency Rental Assistance/Homeless Prevention Services:
BOZEMAN LIVINGSTON
32 South Tracy
Bozeman, MT 59715
phone - 406.587.4486
fax - 406.585.3538
800-332-2796

Livingston, MT 59047
111 South 2nd
phone - 406.222.0896
fax - 406.222.1232
800-289-0896

Originally Posted by ashlexi

What is the name of your state (only U.S. law)? Montana

I am current on my first mortgage but am having problems paying my second. I loset my job and there is nothing left in savings. I have tried to ask for a modification to lower the payment with no results. I so not qualify because we are not delinquent enough and so not have enough income comming in with only my Husbands job and unemployment. Any advice would help. Thanks

[Rural Juror]

But if the second mortgage holder decides NOT to buy out the first mortgage holder, can the second mortgage holder still come after the homeowner with a deficiency judgment?

[HomeGuru]

Originally Posted by Rural Juror

But if the second mortgage holder decides NOT to buy out the first mortgage holder, can the second mortgage holder still come after the homeowner with a deficiency judgment?

**A: yes, there are no free rides unless the lender gives you one.