Foreclosure

[music styles]

What is the name of your state? Ca

I foreclosed on my home in September 2007. I also had a second mortgage tied into the first which stated if the second was not paid or defaulted on, they would go after my first mortgage. Well, I no longer own the property due to the foreclosure. The second mortgage holder is seeking payment and or judgement on me. I was paying a monthly on this second but soon realized for someone else that now lives in the property. If I no longer own the home, am I obligated to pay the second? They are wanting me to come into the office because they are modifying the loan to a cash or personal loan. The second mortgage had a note and deed of trust attached to it. None of stated cash or personal. Any suggestions?

[FlyingRon]

Of course you're obligated to pay the mortgage. No where in the contracts you signed did it say "If the property is foreclosed on and their is a deficiency, we'll forgive that to you" I am sure.

You're in the Peoples Republic of California. There is a very important issue here however. The PRC defines acquisition loans to be non-recourse. This means that their legal options to recover from you are limited tot he secured property ONLY.

You didn't say where this second mortgage came from, but if it was part of an initial "creative" financing, you may dodge this. Even if this was a refinance (provided you didn't take out any cash) or if you took the second out for property improvements. If it was one you took out later to cash out equity for some other reason, then you're screwed.