Legal Question in Real Estate Law in Maryland

I am currently trying to work a loan modification with my lender. About a year ago I had a fire in a barn/guest house on my property. I was/am also behind on my second mortgage. When part of the insurance loss funds came through, my second mortgage holder would not release them unless I signed a default judgement. I needed to pay to remove all the debris and get my property at least from being a hazardous area, so I felt I had little choice but to sign. Although I was the only one on the 2nd mortgage, they also had my wife sign the default judgement. I am trying to modify my first loan, but now the 2nd mortgage holder is trying to enforce this judgement. Is there any remedy for this? I am afraid if they succeed, it will ruin any chances of modifying my first mortgage.


Asked on 7/28/10, 10:06 am

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

Thanks for your post. Generally one does not sign a default judgment, rather default judgment describes what happens when a defendant does not participate in his/her case and the filing party wins by default. Perhaps you are referring to some type of confessed judgment? Generally you will need to pay off a loan when the secured property is a total loss. In any event, your questions involve specific facts not easily addressed in an online post. The relationships between multiple lenders (who has priority) can get complicated. You may benefit from consulting with an attorney and seeking a legal review of the documents you signed with your 2nd mortgage lender.

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Answered on 8/02/10, 2:59 pm


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