Legal Question in Real Estate Law in California

What you got was a standard collection letter form a lender. They are trying to scare money out of you. So what is going on with your house? Are you behind on your payments to both the first and the second? Was your house foreclosed on? If not is your house worth less than the 1st?

If you are behind on your payments, are facing foreclosure, and the house is worth less that the 1st there is no way the 2nd will try to foreclose on you. If they did they will get nothing. If you house is being foreclosed on by the first and if your house is as they say underwater your second will get nothing but they will be able to sue you for what owe them after the foreclosure sale if they do not get all their money. Only if they then get a judgment against you then they can pursue the standard collection activities such as garnishing your wages or levying your bank accounts. However if things are this bad you might want to consider bankruptcy before this happens. In bankruptcy you can deal these debts in a more organized fashion and perhaps pay nothing to the 2nd.

Also if you are on the verge of foreclosure have you tried to get your fist and 2nd modified? Again if you are in this unfortunate situation the 2nd should realize that and cut you a deal because they may not get anything. That�s what we have been able to do for some of our clients

These are just some ideas and I would have to know more about your situation, but it is clear you should go see a bankruptcy attorney sooner than later.

Good luck and hope that helps.

The previous answer is accurate. Much depends upon the status of your first loan. Once the holder of the second has lost its collateral due to a foreclosure of the first, two bad things happen: someone else owns the house, and the holder of the seconf becomes an unsecured creditor who can sue and get a judgment without respect to the anti-deficiency laws.

Of course it is accurate because I gave it and I have a lot more experience in this area that a lot of lawyers. Why don't you give me a call and I will discuss your situation for free, I may be able to help you or refer you to someone who can. My toll free number is (866) 981-1850.

Good luck and either call me or someone else today before your situation gets any worse. If you wait too long no one will be able to help you.

PS And I am modest too.