Legal Question in Real Estate Law in Oregon
Foreclosure With Second Mortgage
We have an 80%/20% interest only
loan that is 30 year fixed on both.
We have heard that if we foreclosed,
that the lender on the 20% loan
might come after us with that
balance in the form of an unsecured
note. Is this true in all cases?
Asked on 7/02/09, 5:09 pm
1 Answer from Attorneys
Susan Burns
Law Office of Susan Ford Burns
Re: Foreclosure With Second Mortgage
It is not uncommon for the lender holding the 2nd mortgage to go after the borrowers after the 1st mortgage forecloses. Is it true in ALL cases? Hard to know. There are probably cases where they do not, but I would expect them to in most cases.
Answered on 7/07/09, 2:32 pm