If I have two morgages on my house,can the smaller morgage which I owe,forclose on me,?

Question

If I have two morgages on my house,can the smaller morgage which I owe,forclose on me,?

Answer 1

Yes, but in order to take posession of the property and evict you, they would have to buy out the first mortgage.  In this climate it's highly unlikely they would do that because of falling property values and lack of capital available to them.  They can however, take you to court, get a judgment and report the foreclosure and place it on your credit report.

You may want to consider a forensic loan audit which looks for errors or hidden fraudulent charges you may not be aware of.  Once you receive this report you can use it to renogotiate the terms of your mortgage with help of a qualified loan modification company.  

Learn more about mortgage audits at www.mfi-miami.com

Steve

Answer 2

Yes they can.  What usually happens though is if the second lien holder (2nd mortgage) files for foreclosure, the first mortgage holder will buy the loan from them.  You will then owe the money to the first mortgage company.  

The first mortgage holder does this to protect their interest in the property and to make sure that they end up with the majority of the property in the event of foreclosure.

If you then stop paying them for both loans they will foreclose.

Good Luck!

Answer 3

If you owe money on a mortgage, and you don't pay the money, they can foreclose.  Doesn't matter if there is 1 mortgage or 4.

Answer 4

If you don't pay it, yes it can.  Your "first mortgage" i simply a loan to buy the house based on your creditworthiness & collateralized on the house; a "second mortgage" is a loan collateralized on that part of the house you already own the equity in.

Don't let this happen, because you will likely end up owing more for the two loans than the property will fetch...