Second Mortgages

[charcarr]

SC here..
Have you heard of the 2ndary trustee deficiency clause or law that says that if there is a foreclosure on the 1st mortgage, then the holder of the 2nd mortgage cannot get the holder to pay?
I heard of this from a CA lawyer in regards to a situation I am in RE: my 1st mortgage being forclosed, and the 2nd mortgage lender is after me to pay. My ex was ordered to pay both the 1st and 2nd mortgages, house has been foreclosed, 2nd mortgage is in my name only, and the lender is after me to pay.
Your own web site says if you default on the 1st mortgage, and the lender forecloses, it can wipe out the 2nd mortgage in its entirety. Can you please clarify this for me?

 

[HomeGuru]

What you believe is not true.
Where on this website does it state that the 2nd is wiped out if the first mortgage lender forecloses.

 

[charcarr]

If you default on the first mortgage, and the lender forecloses, it can wipe out the second mortgage in its entirety. I found this on the website below. Can you please clarify?

http://www.mycounsel.com/content/realestate/mortgages/second.html

 

[HomeGuru]

SC here..
Have you heard of the 2ndary trustee deficiency clause or law that says that if there is a foreclosure on the 1st mortgage, then the holder of the 2nd mortgage cannot get the holder to pay?
I heard of this from a CA lawyer in regards to a situation I am in RE: my 1st mortgage being forclosed, and the 2nd mortgage lender is after me to pay. My ex was ordered to pay both the 1st and 2nd mortgages, house has been foreclosed, 2nd mortgage is in my name only, and the lender is after me to pay.
Your own web site says if you default on the 1st mortgage, and the lender forecloses, it can wipe out the 2nd mortgage in its entirety. Can you please clarify this for me?

My response: you are mistaken as the information did not come from the freeadvice website.

 

[HomeGuru]

If you default on the first mortgage, and the lender forecloses, it can wipe out the second mortgage in its entirety. I found this on the website below. Can you please clarify?

http://www.mycounsel.com/content/realestate/mortgages/second.html

My response: this is the freeadvice website. You got the info from another website and the information provided on the other website is incorrect at face value but could be correct if there was further backup information provided to explain the response.
In your foreclosure of first mortgage example, the 2nd mortgage would only get wiped out if there was no equity in the property over and above the first mortgage. In addition, the mortgage would get "wiped off" title only by virtue of the foreclosure sale. The homeowner on the 2nd mortgage would still OWE the amount due and owing for the 2nd mortgage. It is just that there would not be any mortgage (do to no collateral) but the lender can file a judgement based on the promissory note that was signed when the mortgage was signed.

You should contact those other guys and tell them that their information is grossly misleading.

 

[sanvick]

California Law Regarding Second Deeds of Trust

state of california. I was told that if you did not pay on a 2nd deed of trust for a certain length of time (2 Years) that you could have it removed from the property title.

In my case,
I assumed an existing 1st deed of trust on a rental property in California in April of 2000. The previous owner had obtained a loan through a second deed of trust for $35,000. The previous owner went through bankrupty and the court dismissed the debt.

However the 2nd deed of trust is still on the property title. The holder of the 2nd deed of trust went bankrupt in April of 2000. The 2nd deed of trust has not been paid in more than 2 years.

Can and how would I clear the title of the 2nd deed of trust.

 

[HomeGuru]

Re: California Law Regarding Second Deeds of Trust

state of california. I was told that if you did not pay on a 2nd deed of trust for a certain length of time (2 Years) that you could have it removed from the property title.

**My response: not true.
***********************
In my case,
I assumed an existing 1st deed of trust on a rental property in California in April of 2000. The previous owner had obtained a loan through a second deed of trust for $35,000. The previous owner went through bankrupty and the court dismissed the debt.


However the 2nd deed of trust is still on the property title. The holder of the 2nd deed of trust went bankrupt in April of 2000. The 2nd deed of trust has not been paid in more than 2 years.

Can and how would I clear the title of the 2nd deed of trust.