I am going through a strict foreclosure, in CT. I have a lien from a second mortgage and that mortgager is still trying to collect on that debt, should I still be paying on that or will that lien be taken care of through the foreclosure. What are my rights if any in this matter?
2 Comments to “In a foreclosure am I entittled to pay any liens on the house?”
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Beverly S said:
On May 29th, 2008 at 10:40 am
When a house is foreclosed on & has 2 mortgages the first mortgager usually is the one who forecloses. The first mortgage holder will already have notified the 2nd that they are foreclosing- the 2nd mortgage holder has the option to pay off the first & then foreclose themselves (which isn’t going to happen 99% of the time) or to take whatever they can get when the house sells to new owner. If the house sells for more than the balance due to the first mortgage the 2nd gets whatever the overage is up to their loan amount. In these days of declining home values they may get nothing. Regardless though I would not pay the 2nd since it’s still going to reflect on your credit as a foreclosure what’s the use? The house is their only security so they will not sue you for the balance- although people may tell you this- it never happens! Good luck!
Saïd H said:
On June 1st, 2008 at 6:22 am
Hi James!
I know a very good site where you can find precious information about real estate (Foreclosure is one of their topics among others).
On May 29th, 2008 at 10:40 am
When a house is foreclosed on & has 2 mortgages the first mortgager usually is the one who forecloses. The first mortgage holder will already have notified the 2nd that they are foreclosing- the 2nd mortgage holder has the option to pay off the first & then foreclose themselves (which isn’t going to happen 99% of the time) or to take whatever they can get when the house sells to new owner. If the house sells for more than the balance due to the first mortgage the 2nd gets whatever the overage is up to their loan amount. In these days of declining home values they may get nothing. Regardless though I would not pay the 2nd since it’s still going to reflect on your credit as a foreclosure what’s the use? The house is their only security so they will not sue you for the balance- although people may tell you this- it never happens! Good luck!
On June 1st, 2008 at 6:22 am
Hi James!
I know a very good site where you can find precious information about real estate (Foreclosure is one of their topics among others).
I hope this will help you