What happens to the first mortgage when the second mortgage is foreclosed on?
It depends....the 2nd mortgage holder can buy out your first mortgage and then foreclose on the entire property , the chances are higher of this happening is the 2nd mortgage is kinda large or if they are held by the same lender. If the 2nd mortgage holder decides not to buy the first mortgage out then typically nothing with happen because the first mortgage holder is in control. The 2nd mortgage cannot foreclose on the first mortgage so keep the first mortgage payments current.If the 2nd does not buyout the first then the lien with remain on the property and you will be require to pay it off if you sell or refinance the property down the road.Mortgage loan officer PAIn Texas the law is:
Related Q&A£º
If 3 siblings inherit a house that 's worth 135000 and 1 wants to buy the other two out and still ow-Well, that's a bit of a tricky situation. First off, they'd need to figure out how much each sibling's share of the inheritance is. So, if it's split evenly, that'd be about $45,000 each. But if one wants to buy the others out, they'd have to negotiate a fair price. Maybe they could consider factors like the current market value, any improvements made to the house, or sentimental value. It's important to have open and honest communication to avoid any hard feelings. Gosh, family matters like this can get complicated!
