Welcome to Mortgage Foreclosure Guide
Mortgage Foreclosure Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Know Where You Stand With a 2nd Mortgage Foreclosure
from:Most people have a mortgage on their home. Some people even have a second mortgage. You can have a second mortgage at the same bank as your first or you can have it at a different bank. Most people that have second mortgages have them at a different bank. People get second mortgages for different reasons. They may have excess debt they want to pay off or they may need the money to catch up on their first mortgage. Perhaps they are using the money for remodeling or to take a long-awaited vacation. Whatever the reason, many people choose to take out a second mortgage on their home. Unfortunately, if you can’t make the payments on your second mortgage, you can have a 2nd mortgage foreclosure the same way you can on your first mortgage.
Many people misunderstand the 2nd mortgage foreclosure and how it works in reference to the 1st mortgage foreclosure. Any time there are two mortgages on your home, the first mortgage always takes precedence over the second mortgage. The same is true with a 1st and 2nd mortgage foreclosure. Some people misunderstand what this means. They feel that since their first mortgage takes precedence over their second mortgage, they don’t have to worry about staying current with their second mortgage as much as their first. They couldn’t be more wrong with their thinking.
If you become delinquent on your second mortgage, the lender can initiate 2nd mortgage foreclosure proceedings against your home. You can lose your home even if you’re current on the first mortgage. When a home becomes foreclosed, it is repossessed and usually sold at auction to the highest bidder. If your second mortgage is in default and you lose your home to a 2nd mortgage foreclosure, the first mortgage will still take precedence. When your home is sold as a result of the foreclosure, the proceeds will go to the lender of the first mortgage to cover the balance that is due to them. Whatever is left will go to the lender of the second mortgage to pay them what you owe them. If there’s any money from the proceeds left after paying both mortgages, late charges, legal costs and other fees, the balance will go to you.
It’s important to understand the seriousness of a 2nd mortgage foreclosure so you know you rights and what to expect. If you find yourself in a foreclosure situation with either mortgage, it’s to your advantage to contact an attorney for advice. However, it’s more important to contact your lenders when you first begin having financial difficulties. This may help you avoid a 1st or 2nd mortgage foreclosure.
Mortgage Foreclosure News
Free foreclosure workshops offered at HFCL
DEARBORN -- The Dearborn Public Library is partnering with the Wayne County Fight Mortgage Foreclosure Program to present free workshops on Thursdays in September and October for people needing financial counseling in order to keep their houses .
Read more...LPS' July Mortgage Monitor Report: Foreclosure Starts Increase; Late-Stage Delinquencies Lead Rise
The July Mortgage Monitor report released by Lender Processing Services, Inc. shows that foreclosure starts are on the rise, with seriously delinquent loans â those six or more months delinquent â dominating new foreclosure actions.
Read more...Foreclosure rates remain high in metro-east
Triple-digit foreclosures remain the norm in St. Clair and Madison counties as 273 homeowners filed for foreclosure in both counties last month.
Read more...Foreclosure info sessions offered
The state Banking Department is holding a series of information sessions to help people on the brink of losing their homes. The seminars will review some of the options homeowners facing foreclosure can turn to, including the federal Making Home Affordable program, the state-run foreclosure mediation program, short sales and other options. Speakers at the sessions will also discuss the ...
Read more...Mortgage rates hit record low: Freddie Mac
U.S. mortgage rates fell in the past week to the latest in a series of record lows as yields on government debt dropped, according to a survey released on Thursday by Freddie Mac, the second-largest U.S. mortgage finance company.
Read more...