Can a second mortgage foreclosure on my home?
Yes, a second mortgage holder can foreclose on the home, even if your 1st mortgage is paid on time each month. Both home equity lines of credit and traditional 2nd mortgages may foreclose on a property. However, applying for a loan modification or Chapter 13 bankruptcy may stop the foreclosure.
Can I modify a 2nd mortgage?
Yes, you can apply for a loan modification of the 2nd mortgage even if the bank already filed for foreclosure. However, a loan modification requires the bank’s approval. On the other hand, if you file a Chapter 13 case you can force the bank to give you 5 years to pay the past due… Read More »
What happens to a 2nd mortgage in bankruptcy?
If there is not enough equity in the home to secure the 2nd mortgage, the loan may be stripped and discharged in bankruptcy. This process is commonly referred to as lien stripping and may also be available for your car loan as well. If the lien is stripped, it will be treated as an… Read More »
How do I stop foreclosure from a 2nd mortgage?
If a Chapter 7 or Chapter 13 case is filed an automatic stay will be put into effect. The automatic stay is a federal law that stops all collection activity, including foreclosure sales already scheduled to occur. Additionally, you can force the bank to give you 5 years to pay the past due amount… Read More »