Advice on foreclosure on 2nd mortgage - The Bills.com Blog

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Advice on foreclosure on 2nd mortgage

Question: Last year due to a medical problem we faced a foreclosure, we worked out a deal with our first mortgage company and just this month completed the deal, while we were in trouble our second mortgage was sold to another firm, we have heard nothing from them in a year. Now that we are current and caught up with our first mortgage... Can the second mortgage company, push usback into foreclosure? prior to all this happening we had filed bankruptcy and our second mortgage company was discharged thru it, they notified us that they placed a lien on our property.

Answer: Generally speaking, a second mortgage holder could foreclose on your home if you have defaulted on your payments on the second mortgage. Usually they don't like to do this, however, because the first lien holder (your first mortgage) gets paid first and frequently there is little left over

for the second.

However, you mention in your question that the second mortgage was discharged in bankruptcy, so I do not know if this lender still has the ability to force the foreclosure of your home. Usually secured debts, such as mortgages and home equity loans, cannot be discharged in bankruptcy, so I am not sure how you were able to discharge your second mortgage loan, or if the loan actually was discharged in your bankruptcy. I encourage you to speak with your bankruptcy attorney to discuss

the status of your second mortgage loan. Your attorney should be able to help you determine if the lender still has the ability to foreclose on your home. Since I do not know the details of your bankruptcy filing, I cannot say whether or not the second mortgage still has the right to foreclosure.

I wish you the best of luck in resolving this debt, and hope that the information I have provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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