What do I do about my second mortgage that didn’t foreclose?
April 6th, 2010 | 
Author: Oυr home hаd two mortgages. It foreclosed a year ago, bυt thе second finance іѕ open. Wе believe thаt bankruptcy іѕ thе οnlу way out οf іt bυt dοеѕ anyone know аnу οthеr way out οf іt? Wе don’t know аnу details οf hοw much thе first finance gοt fοr thе home аnd whу thе second didn’t foreclose. Bу-thе way, thе home wаѕ іn VA.
Thanks fοr уουr responses.
Posted in Mortgage FAQ
It would be nice if you posted whether or not your primay residence was sold or not….if it was and it didn’t cover the second finance then your only choices are bankruptcy or to pay it off.
If your first finance foreclosed on the home, then it exercised its rights of being in the first lien spot. Essentially what happens here is that one company is first in line, the next company is second in line to claim whatever value the home has.
The reason the second did not forecloses probably is because the house did not have sufficient justice to cover the first note, so why toss excellent money after terrible
If the home secured the debt, this should have been discharged in the foreclosure, as there is nothing to secure the debt at this time. Contact the lenders and question what happened to these mortgages. I believe the second was cleared, but there is a paperwork glitch somewhere.