What kinda of recourse do the lenders have? Is it different between the first and second mortgage?
If the second also went into foreclosure, and the bank took the house, can the lender of the second mortgage still come after repayment through lawsuit or wage garnishment, etc? The house resold for less than the original loan amount of the first so there were no proceeds from the sale to cover any of the second.
Yes, you are fully responsible for the second, third, etc. You only owe state income tax on the first if you never refinanced it.
In California, after foreclosure, are you still responsible for your second mortgage?
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October 15th, 2008 at 3:02 pm
YES
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October 15th, 2008 at 3:19 pm
Yes, you are fully responsible for the second, third, etc. You only owe state income tax on the first if you never refinanced it.
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October 15th, 2008 at 9:44 pm
First, let me say this is a legal question and I would advise you to seek legal counsel as soon as possible. This really isn’t the best forum for that answer. I am not an attorney, and consequently, my advice is based only on personal knowledge from working in the industry.
With that said, It is possible for the second mortgage lender to come after you legally. However, there are rules that they must follow. For example, if they actually initiate the notice of default and trustee’s sale and go the distance legally, then they are at a loss if the home doesn’t sell for what is owed.
So, again, please seek legal advice from a licensed attorney that practices real estate law, not criminal, divorce, corporate, and etc. Talk with a good real estate attorney before you do anything.
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