Question: If the primary residence has two mortgages and the first one is up to date, but the second is not, can the 2nd lien holder start forclosure process?
Answer: -Yes, any lien holder can initiate the foreclosure process to get paid what’s owed them. However, many junior lien holders wait longer before they initiate foreclosure because they are responsible to payoff any senior lien holders. So at the auction if no one bids, the 2nd has to payoff the 1st. This is why if you are bidding at the auction, it’s critical to know who is foreclosing because sometimes they start the bid a what’s owed the 2nd and you think you’re getting a steal. Come to find out you have to pay off the 1st as well.
If the 2nd lien holder forces a sale before the
first and the property value is $150,000 less than
the first. the 2nd having $80,000. what then and why
would they do this in CA.
Thanks
Sometimes banks make no sense at all. It doesn’t make sense why a lien holder in 2nd position would foreclose knowing that even the 1st is $150,000 upside down, but at some point they have to take action. It’s really hard to say.
not only can the junior lienholder foreclose, they can sue you for a money judgment.
So if I’m paying my 2nd mortgage and not paying my first, I should just stop payin it to?