second mortgage question

[loots]

What is the name of your state? virginia

my husband had a first and second mortgage with our lender. the lender then sold the second mortage to another company, but we have, as of yet, received ANYTHING from them. we are current with our first mortgage, but in default with the second. can the second mortgage company start foreclosure proceedings? if this is to occur, what would happen with the first mortgage, if anything. any information would be greatly appreciated.What is the name of your state?

 

[FlyingRon]

The sale of the loan has no bearing on your responsibility to pay it. Sure the second can foreclose. How likely they are to do so depends on whether there is sufficient equity that it will get them something in their junior position.

 

[loots]

Our responsibility to repay the second mortgage was not in question. What would happen to the first mortgage if the second foreclosed was what I was wondering. Currently, our house is valued around 100,00 less than what we owe on the first mortgage (I can only assume it is due to current market values declining), so there is no equity.

 

[Veronica1228]

Our responsibility to repay the second mortgage was not in question. What would happen to the first mortgage if the second foreclosed was what I was wondering. Currently, our house is valued around 100,00 less than what we owe on the first mortgage (I can only assume it is due to current market values declining), so there is no equity.

If they forclosed on the home the FI in first position would get paid off first (most likely whomever holds the first mortgage), then the FI in second position and so on. FIs don't take foreclosure lightly since it is costly and they only use it as a very last resort. It was your resposibility to be proactive and find out who you were supposed to start sending your payments to when the 2nd mortgage was sold. I suggest you find out who it is and try to work with them.