Legal Question in Real Estate Law in California

Re: 3rd mortgage

Mr. Whipple has a very thorough answer on this, if you go back through the last few messages in my queue to the one titled "second and third mortgages".

With an apparent recession on the way, and the mortgage and housing markets where they are, this is, and will, become very common in the U.S.A.

Re: 3rd mortgage

The same thing that will happen if you stop paying on the second or the first--the lender will commence foreclosure. Unless the third was created at the time you purchased the property (not any time afterwards)the lien could be judicially foreclosed and you could end up not just losing your home, but also owing for the difference between what your home brings at a foreclsoure slae and what the lender is still owed on his note. For instance, if, after a sale wherein the first and second are paid, the holder of the third is still owed $100,000.00, he can get a judgment against you for that amount and try to recover from ANY asset you have, or garnish your wages, etc. Also, if there was any fraud at the time of creation of that loan (such as you claimed to have a greater salary than you do, or you failed to list other debts, etc.), then a lender has a potential claim for punitive damages.

Re: 3rd mortgage

The holder of the mortgage could foreclose their lien, but as soon as the first and second find out they will also move to foreclose. If there is an excess between the sales price and the the first lien, then after paying the costs of holding the sale, the first gets its lien entirely paid off and anything left up to the amount of the 2nd lien goes to he se--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+------------------+cond, and etc.

d liken