What happens to the second mortgage when the first mortgage forecloses?
I am going through a foreclosure on my first mortgage, what are my options with dealing with the second mortgage? Any legitimate websites with guides for dealing with the aftermath of foreclosure would also be appreciated.
If and when the bank sells your house, the amount of the sale will be applied as follows:
First, the costs of repossession, foreclosure and the sale will be paid.
Second, money will be applied to your outstanding balance
Third, any other lienholders (2nd mortgage) will get money.
In this market, the bank is going to be lucky to sell the house for enough money to pay the fees let alone the first mortgage.
So, what will happen is that the 2nd mortgage holder will want you to pay and they very well could sue you and garnish your wages to get paid.
How often do mortgage comapnies use the 4506 t form to very info. Always or hardly ever when buying a home?
If you provide the mortgage company with all the requested info do they typically follow up on that. Does it vary from company to company or is it a common practice for them to execute the 4506t form. Also, has anyone everheard of first choice mortgage in charlotte? Any thoughts on them?
The primary reason behind using a 4506 form is to prevent mortgage fraud. Lenders use such a form to collect copies of the tax returns of self-employed borrowers for the past 2 years from the IRS. Most big lenders and mortgage companies ask borrowers to fill out such a form. To know more on why 4506 form is used, refer to http://www.mortgagefit.com/know-how/irs4506form.html .
What happens to a real mortgage when a debtor files for bankruptcy?
I’m a creditor whose debt is secured by a real mortgage. I’ve received recently a notice that the debtor has filed for bankruptcy under chapter 7 of the US Bankruptcy code. What will happen to both my loan and my mortgage? Will I be enjoined from foreclosing the mortgage? The insolvent debtor by the way is an individual, not a corporation. Please prvide legal basis.
Thank you. 🙂
You have the best kind of security. You have about the strongest position you can get in bankruptcy as a creditor. The way I understand it there will be no need to foreclose. Just file your interest as a creditor as per the instructions on the paperwork.
Hopefully, they’ll order the sale of the asset and you will be first in line for the funds from it, provided you are the primary mortgage holder and not subordinate to anyone.
Regardless, be sure to speak with a bankructy attorney. You may get a free consultation or may have to pay a drop, but it will be well worth it for the guidance.
How do I become a mortgage broker or mortgage agent in California?
I am fresh out of a college. Not just any college; a community college. And I need step by step how to become a mortgage broker or mortgage agent please. Thanks alot.
Get a job at the Mortgage Broker Office.
At first, you’ll just answer phone calls and all, but eventually, you’ll either be a processor or agent.
How can I lower my mortgage payments on my home when I have two homes with high mortgage payments?
I built a house in 2008 but have not been able to close on the home and secure a mortgage. The mortgage companies I have spoken with tell me that until my previous home is sold I will have to continue with a construction loan and a very high payment. Does anyone have any advice?
Yes sell your other home. You unwisely took on more then you can afford otherwise a lender would have given you a mortgage.
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