mortgage second charge
Friday, May 21st, 2010
Need Advice: What happens to the second mortgage after the home is foreclosed. Does the 2nd mortgage disappear
Unfortunately my home was foreclosed and I tought, the 1st and 2nd mortgage disappears and the procces will ended. But suddenly I started receiving calls from the bank lender of the 2nd mortgage. They said I still owed them even if the home was foreclosed and if I didn’t pay them, they will reported to the IRS, so they can charge it off on my paycheck. It’s that true. Need some advice. Thank You!!
(I had a 80/20 loan with two different bank lenders)
Oceanside, California
Although the foreclosure may have eliminated all of the junior liens, the loans continue to exist. The mortgage is the security interest in the property, that secures the amount due on the loan. Even when a mortgage is removed, if the loan is not satisfied, the loan remains due and payable. The loan and the mortgage are two separate documents.
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