Legal Question in Real Estate Law in California
Can a 2mtg foreclose on your home even though your house is not worth what it once was? Did a modification a couple of years ago on the 1st. we have been making payments and are in good with them. Dont understand why the 2nd was never included. They were both with different mortgages.
1 Answer from Attorneys
Well of course it wasn't included if it was a separate loan. And the value of the property has nothing to do with whether or not a lender can foreclose. They may not WANT to foreclose if the drop is too great. For example the second wouldn't want to foreclose if the property has become worth less than the first, because then the second has to pay the first, but there is no equity to do it. So they would not foreclose in that event. But if there is any money for the second to get, the fact that the property has declined in value is irrelevant.
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