I Am Behind On My Second Mortgage, Will They Take My Home?

A second mortgage can be foreclosed upon if you fall behind in your payments. Many people believe that if they are current on their first mortgage that the lender on the second mortgage will not foreclose. This is the farthest thing from the truth. People who allow their second mortgage to fall behind enough to have foreclosure proceedings placed against the home risk the chance of loosing that home. A second mortgage holds the same weight as a first mortgage when it comes to payment and collections.

Can I Get A Loan Modification On My Second Mortgage And Avoid Foreclosure

Loan modifications are a great way to prevent foreclosure. When you complete the process and are approved, you become current on your loan again. If you need to get a loan modification you should contact your lender immediately. You can apply for a loan modification even before your mortgage is past due or facing foreclosure. You do not need to hire an agency to perform a loan modification; you can contact the lender yourself and ask for the appropriate forms.

If I Am Foreclosed On By My Second Mortgage What Happens To The First Mortgage

If, by chance, you are foreclosed upon by your second mortgage your home will be placed up for sale to cover the debt. According to foreclosure law, the entity that brought the foreclosure proceedings against the borrower will the first to be paid. So, when your home is sold the second mortgage will be paid off first. The remaining money will be used to pay your first mortgage. If the remaining money does not cover the full amount of the first mortgage you will be responsible for that debt. If there is an overage left over, which is very rare, the proceeds will come to you.

Related posts:

1. What Happens To A Second Mortgage After Foreclosure?
2. If I Am Behind, Should I Stop Paying My Second Mortgage?
3. Can I File Bankruptcy On My Second Mortgage Only?
4. What Happens In A Second Mortgage Foreclosure?
5. What Is A Mortgage Short Sale?