The fact that you pay your first mortgage regularly doesn’t prevent the second mortgage from facing foreclosure. If you did not turn in your second mortgage payment regularly for a long time, your lender might be faced to order foreclosure. Though some benefit comes with a second foreclosure that will make a foreclosure rare, if you cross your limit, you will be faced with a foreclosure. Here are some of the things your lender will consider before initiating a foreclosure:
Property value is constantly decreasing and this makes many house owners default on their payment as the property is not of the same value again. However, the second mortgage holder does not usually initiate a foreclosure because the first mortgage has to be cleared first, and this leads to the second mortgage holder having nothing left of the sale or having only a little. Therefore, a second mortgage holder will only initiate foreclosure when they are sure that the money gotten from the sale will cover for the first mortgage and still remain a substantial amount for them as well.
Second mortgage holders usually negotiate with house owners to find possible payment solutions. An agreement can be reached in which the house owner pays a lump sum settlement and foreclosure will be avoided. Company policies will be considered and some lenders can even settle for 30cent on the dollar. It will be of great advantage to go through this negotiating stage with a lawyer, this will give you a tactical advantage as the lawyer will make sure you’re not been cheated in any way.
A second mortgage foreclosure can be stopped by making use of the second option listed above, negotiate a settlement and you will totally prevent or stop a foreclosure.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.