Two different mortgages with two different companies

Question

I have two mortgages with two different companies. I heard that if my house forecloses, the 2nd mortgage company gets nothing. Is that true?

Answer 1

Depends - the mortgage company with 1st lien position gets paid 1st and if there is money left over, the mortgage company with 2nd lien position gets paid.  

Answer 2

Not necessarily.  The first mortgage gets money first, if there is anything left over the second mortgage gets it.  That's why interest rates are higher on second mortgages - they are riskier.

Answer 3

No.  The first mortgage is paid off first, then anything left goes to the second mortgage company.  If there is anything left over, they can take you to court and get a judgement for it.  You are still responsible for both mortgages.  And if it foreclosed on, you still have to pay the difference between what they recoup from it's sale and what you still owe.

Answer 4

yes

thats why its called 1st and 2nd

1st is owed 100

2nd is owed 50

house sells for 125

1st gets 100

2nd gets 25 and loses 25

u get nothing.

the question is, would you like to see if you can save the home?

there are loan modifications and workouts being done every day... not a refinance.

available for discussion uopn request.