A financial institution can bring a foreclosure lawsuit on a second mortgage. Home improvement loans and lines of credit against a home are examples of two different types of second mortgages. Second mortgages are subordinate to first mortgages. Even if you make payments on your first mortgage and are up to date, the financial institution holding the second mortgage can still foreclose on your home and take it back from you.
Second Mortgages and Short Sales
Even if you move forward with a short sale with regard to your home on your first mortgage, you still will owe your second mortgage lender. This means, unless you negotiate a deal with both your first mortgage holder and your second mortgage holder to do a short sale, you will be responsible for paying off your second mortgage. Issues involving second mortgages are somewhat different than issues involving first mortgages. If the first mortgage on your home is secured by all the equity in your home, or your home is under water with regard to the first mortgage (worth less than the amount of your first mortgage) the second mortgage is liening on air. Why is it liening on air? Because all of the equity in your home is being liened on by the first mortgage so there is no equity left for the second mortgage holder to lien on. This creates a situation where your second mortgage is more of a personal obligation such as a personal loan or credit card debt.
A Hundred Years of Combined Experience
Our attorneys have more than 100 years of combined legal experience. If you default on your second mortgage, we can provide you with a list of options to deal with this problem. Our law firm offers personal services to our clients and free consultations to individuals facing foreclosure problems. Call us for a free consultation. At your initial meeting we will layout a strategy, and game plan as to how to protect your home.
