Legal Question in Credit and Debt Law in New York

Re: home equity, 2nd mortage

Yes. You borrowed money from two entities. If you are in default to either one, they can foreclose. Your breach of the second lender is probably a breach of your first lender as well depending on the terms of the agreement you made with the first lender. In a foreclosure, the first lender gets priority and the second lender gets paid only after the first lender's loan is satisfied. If there is not sufficient value in the property to fully compensate the first lender, the 2nd might not get paid in full and you will be liable for the deficiency.

Re: home equity, 2nd mortage

Yes if you are in default under the terms of your 2nd mortgage. At foreclosure the buyer (or 2nd mortgage holder bidding in its debt) would acquire your house subject to the existing 1st mortgage.

Depending on your credit, your equity in the house and what stage you are in the process, a refinancing might be a solution. Alternatively, if you are currently employed or self-employed with steady income a repayment plan in a Chapter 13 bankruptcy filing could allow you to keep the house and cure the arrears over time.

Re: home equity, 2nd mortage

yes, but the first mortgage has payment priority.

Re: home equity, 2nd mortage

Absolutely.

Good Luck.

RRG

Re: home equity, 2nd mortage

Yes, it absolutely can if the property was used as collateral as it usually is in most instances. There are a variety of ways to get out from under such a situation including refinancing and restructuring, all of which could potentially keep you out of court but if you need to go to court on this matter my firm would be able to handle that for you too... please feel free to contact my office regarding this matter 2127098303