23
Nov

Can a default on a 2nd mortgage cause the the 1st to go into foreclosure if payments are current on the 1st?

Archived in the category: 1st mortgages

I have 2 mortgages and was wondering what happens if one goes into default, can the mortgage in default cause foreclosure on both the 2nd and 1st mortgage?

the holder of the second mortgage can force a forclosure, but the first mortgage holder gets paid off first, so depending on the balance owed on the first mortgage, it might not be in the the best interests of the holder of the second mortgage to bother with the cost and hassle of forclosure, since a lot of forclosure sales end up not getting the lenders what they have in loans.

Related posts:

  1. What happens if I default on a 1st mortgage but not on a second?
  2. What happens with the 2nd mortgage when I give the 1st mortgage holder a deed in lieu of foreclosure?
  3. What happens to 2nd in a foreclosure when the 1st mortgage is not even satisfied on a sale?
  4. what happens in a home equity default when the 1st mortgage is current?
  5. can an overdue 2nd mortgage put home in default if 1st mortgage is timely?
Posted by: admin - 3 Comments

3 comments for “Can a default on a 2nd mortgage cause the the 1st to go into foreclosure if payments are current on the 1st?”

.1
Tracker

Yep. Not paying home equity loans can cause them to foreclose on your home. Your home would be collateral on the second loan, therefore if you don’t pay it, they take your home.

If you’re having trouble paying I would contact your lender immediately and see if you can work something out with them until you can get caught up. See where you can shrink your budget, taking money from other things to pay for the second mortgage. No more eating out or movies, etc. Tighten up the budget.
References :

November 24th, 2009 at 5:08 am
.2
John M

the holder of the second mortgage can force a forclosure, but the first mortgage holder gets paid off first, so depending on the balance owed on the first mortgage, it might not be in the the best interests of the holder of the second mortgage to bother with the cost and hassle of forclosure, since a lot of forclosure sales end up not getting the lenders what they have in loans.
References :

November 24th, 2009 at 5:29 am
.3
tgllvor

Contact your 1st mortgage and see if they can refi you into one loan and get rid of that 2nd. They can foreclose even if you have never been late on yoru 1st.
References :

November 24th, 2009 at 5:45 am

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