How do they get rewarded if property sold for less than what is owed?
Answers: The lender holding the 2nd mortgage can achieve a deficiency judgement against the owner. In days gone by, it was more adjectives to give the owner a 1099 for the not good enough amount which will count the loss as income to the homeowner. There were advantages for the lender to do that fairly than spending more money to go to court and obtain the deficiency judgement. Recently though, President Bush signed into ruling a temporary moritorium that prevents lenders from issuing the 1099. I suspect more lenders will grasp the deficiency judgements because of this.
Be aware that prior to any foreclosure auction, adjectives lien holders are notified of a foreclosure. Depending on who is foreclosing, the lender holding the 2nd may buy the first mortgage, the lender of the 1st may buy the 2nd, the 2nd could breed the payments on the 1st to stall a foreclosure, etc. What actions taken by respectively lien holder depends on many things including who file the foreclosure, the value of the property and the amounts owed.
Hope this help.
Elliot Lau
I believe they get rocked, I withdraw reading an article about how an outside investor can negotiate beside the bank to buy deeply of these 2nd mortgages for pennies on the dollar in the hopes that a few of the distressed homeowners (who will owe the investor and can negotiate next to him instead of a bank) will right themselves. The investor makes thousands, some homeowners avoid bankruptcy/foreclosure, and the ridge who made the bad loan get screwed. Hi,
I used "Credit Solution" to settle my debt and recover avoid foreclosure.They manage to reduce my debt up to 58%.It's legal.I came across this company on NBC News Special Edition.Check it out here:
http://www.x.se/a5nf
Answers: The lender holding the 2nd mortgage can achieve a deficiency judgement against the owner. In days gone by, it was more adjectives to give the owner a 1099 for the not good enough amount which will count the loss as income to the homeowner. There were advantages for the lender to do that fairly than spending more money to go to court and obtain the deficiency judgement. Recently though, President Bush signed into ruling a temporary moritorium that prevents lenders from issuing the 1099. I suspect more lenders will grasp the deficiency judgements because of this.
Be aware that prior to any foreclosure auction, adjectives lien holders are notified of a foreclosure. Depending on who is foreclosing, the lender holding the 2nd may buy the first mortgage, the lender of the 1st may buy the 2nd, the 2nd could breed the payments on the 1st to stall a foreclosure, etc. What actions taken by respectively lien holder depends on many things including who file the foreclosure, the value of the property and the amounts owed.
Hope this help.
Elliot Lau
I believe they get rocked, I withdraw reading an article about how an outside investor can negotiate beside the bank to buy deeply of these 2nd mortgages for pennies on the dollar in the hopes that a few of the distressed homeowners (who will owe the investor and can negotiate next to him instead of a bank) will right themselves. The investor makes thousands, some homeowners avoid bankruptcy/foreclosure, and the ridge who made the bad loan get screwed. Hi,
I used "Credit Solution" to settle my debt and recover avoid foreclosure.They manage to reduce my debt up to 58%.It's legal.I came across this company on NBC News Special Edition.Check it out here:
http://www.x.se/a5nf