NLIC.org

Kelly Said:

How do you subordinate a second mortgage?

We Answered:

I have successfully gotten subordination agreements from Chase. They have a form to fill out, will want $100 or $200, & more than likely will want a copy of your appraisal. It will depend on what your CLTV will be. And they do NOTHING quickly. I agree. This is basic mortgage 101.

Esther Said:

Isn't a second mortgage included in the approval process of a short sale?

We Answered:

Your daughter is the first of many whom I'll afraid are going to deal with this.

The short sales was agreed to by the first and the 2nd mortgage holders, but the fine print is VERY important. The banks agreement does NOT mean that they are willing to forgive the additional debt owed, it just means that they are willing to allow your daughter to sell the asset vs foreclosing on it.

The fine print states if the bank still holds the borrower liable for any shortfall. If it states that the bank released her from liability, then call the collection agency and fax them a copy.

I'd recommend you have the paperwork reviewed by a real estate or bankruptcy lawyer. They can tell you very quickly if the bank did everything right, or if there is a loophole. If they did to it right, and didn't release deficiency, she'll have to deal with paying something. It that case hiring a lawyer to negotiate the smallest payment would be recommended. (AKA she can negotiate paying less then the full amount).

Good luck!

Jerome Said:

What happens in a second mortgage foreclosure.?

We Answered:

To foreclose, the second lien holder has to pay the first off in full. Slim chance there will be anything left for the second to get after that occurs.

Raymond Said:

Does anyone know the laws forclosure in the state of Ariizona when there is a first and second mortgage?

We Answered:

The second can do nothing and hope there is money to pay him/her or the second can bring the first current and to their own foreclosure.

Mark Said:

Should i stop paying my second mortgage?

We Answered:

Yes, I agree that you are missing the point of the rights of a secured lender.

In most cases, non-payment allows the second mortgage holder to start foreclosure proceedings against you if they are willing to pay off the first mortgage. So, you are playing a math game...better have the numbers in front of you.

For example.

If you owe $100,000 on your first mortgage and $45,000 on your second mortgage and your house is worth $300,000, you can bet your sweet bippy that the second mortgage holder will seize your house and sell it if you stop paying him.

On the other hand, if the 1st is $250,000, the 2nd $35,000, and the current market value is $200,000, the second mortgage holder is screwed.

Cecil Said:

Do mortgage lenders ever agree to a second charge being put on someones property?

We Answered:

I don't think I understand what you mean -- a second charge? Do You mean a lien?

Additional liens may be placed on the property, but they are subject to seniority (That is "a place in line." If the first lien -- the mortgage company-- sells the property and there is money "left over" after their lien is paid, then the second lien holders gets his piece and so on)

Terry Said:

Second Mortgage Lender re: Collateral?

We Answered:

If you hold a second mortgage and the first mortgage consents to a short sale, it is the first mortgage owners loss.

The second mortgage lien is not changed by the first mortgages short sale. It is still in effect for the full amount of the second mortgage EXCEPT it is now a FIRST MORTGAGE.

The terms of the second (now first) mortgage must be complied with by the new owners. If not the second (now first) mortgage can foreclose.

The only way the second mortgage owner will be in trouble is if the first mortgage foreclouses and the property is sold at auction. In this case the second mortgage becomes an unsecured loan. Email me at BOB_FORD@SBCGLOBAL.NET if you need more info.

BOB