Financial Information
What happens if a house and excludes the auction only pays the first mortgage and not the second?
If the second mortgage holder come after you, or be capable of something (besides a foreclosure) has issued your credit card as a sentence? Would they garnish wages ale or crazy like that in the future? The reason why the two loans, first and second (100%) was used to buy the house. The value has decreased and the foreclosure auction will be sufficient to cover only the first mortgage and a portion of the second. If you could prepare sites that show this type of legislation would be grateful. Dank.Oh and real examples would be great. I have heard many people say yes, they can come after you, but those who really listen to him even one of them were excluded, tell me a real horror story. This could be because there are many second lienholder use fear to some people, pay them money and save some of their Verluste.coragryph, keep in mind that the second purchase price had been used , it is not a second mortgage, has been “removed”. You also heard about what really happened, or just study? Thats what I think most lenders do not go by how they end up getting nothing after all the money to fight against the law and most people could file BK to avoid them.
What you are talking about is what was called an “upside down mortgage” where the mortgage debt is worth more than the house, which is decreasing in value.
Say you have a house worth $20k, and one mortgage for $25 and a second for $10K.
When the mortgages are foreclosed, the first mortgage gets all the $20K, and can sue the homeowner for a “deficiency judgment” for the last $5k that remains on the mortgage. The second mortgage holder can sue the homeowner for their $10k claim, and get a civil judgment, but it will not be attached to anything (meaning there is nothing they can take or foreclose to get their money) but they can garnish income.
That’s how it would be in your example. The first mortgage holder gets their money and goes away. the 2nd gets part, and sues you for a deficiency judgment for the remaining money.
what it sounds like is you need a bankrupcty lawyer, if you want to keep the house. good luck
If you want to know if they will actually bother, yes, because civil judgments last for 10 years (at least in NYS) and you can renew those babies. Meaning, they can wait until you have the money, no skin off their nose. Also, since they changed the bankruptcy laws, its not as easy as it was to get rid of debt as it was last year. There’s much less protection for debtors, now.