How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Tina Your Own Question

Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 32721
Experience:  17 years of legal experience including real estate law.
4460311
Type Your Real Estate Law Question Here...
Tina is online now
A new question is answered every 9 seconds

WHAT RECOURSE DOES THE 2ND. HAVE WHEN THE 1ST. IS UNDER THE

Customer Question

WHAT RECOURSE DOES THE 2ND. HAVE WHEN THE 1ST. IS UNDER THE WATER, I WANT TO KEEP MY HOME, BUT WHIPE OUT MY 2ND. CAN,T DO A MODIFICATION DID BEFORE, WHATS MY OPTIONS? TERRY
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Tina replied 1 year ago.

Hello and welcome.

My name is XXXXX XXXXX my goal is to provide you with excellent service today. I am sorry to hear of your difficult situation. Before I can give you an accurate answer to your question, please provide the following additional information:

Is your second mortgage and equity line of credit or were the proceeds used to purchase the property? Is the second mortgage in default?

I look forward to assisting you as soon as I have received this information. Thank you.

Customer: replied 1 year ago.


I BUILT THE HOME THE 2ND. WAS USED TO XXXXX ITS NOT IN DEFAULT i,.owe 2 payements

Expert:  Tina replied 1 year ago.

Hello again, Terry, and thank you for the additional information.

This sounds as though the second mortgage is an equity line of credit since you received the funds (they were not directly paid to a seller) and then used the proceeds from the loan to finish/improve your property.

In that case, the second lender would normally be subordinate to the first mortgage holder and they would have little incentive to foreclose since any proceeds from the sale of the property would normally be paid to the first mortgage holder, leaving the second mortgage holder with nothing.

Therefore, they may be willing to negotiate a settlement and release with you for a fraction of what you owe, if they are made aware that your first mortgage is under water.

If not, I would not typically expect them to pursue foreclosure. In any case, if you did file for bankruptcy protection and did not reaffirm the second mortgage (but did reaffirm the first) and the holder of the second mortgage did not foreclose, then the second would normally be discharged in bankruptcy and you would owe nothing further. That is potentially the most attractive option, but it does put the biggest dent in your credit rating.

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!

Tina

Customer: replied 1 year ago.


so should i start the neg. with the lender or just wait for them, and if neg. are not satisfactory then start proceding with a bankrupcy att.?

Expert:  Tina replied 1 year ago.
Hello again, Terry. My sincere apologies for the delay. I was called away from the site for a bit.

If you are willing to pay something to be release from the balance of the loan, then when the loan is in default, the lender may be willing to negotiate with them. If an agreement is not reached and they pursue foreclosure and indicate they are seeking a deficiency judgment against you, then bankruptcy would typically be the best alternative.

If they do nothing, then you may wish to avoid bankruptcy and wait them out.

I hope that further clarifies the situation for you.
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 32721
Experience: 17 years of legal experience including real estate law.
Tina and 4 other Real Estate Law Specialists are ready to help you
Expert:  Tina replied 1 year ago.

Thank you for your positive rating of my service. It has been my pleasure to assist you and I hope you will ask for me should a future legal need arise.

When you receive your Customer Satisfaction Survey from JustAnswer, please do rate me highly (9-10). It benefits my ability to assist you and other customers, and would be tremendously appreciated.

Thanks again and all the best to you.

Tina

Note: Please feel free to request me if you have future legal questions by going to your “My Questions” page and clicking on “Request Tina again” next to my photo. I look forward to hearing from you.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.
 
 
 

Related Real Estate Law Questions

Chat Now With A Real Estate Lawyer
Tina
Tina
Attorney and Counselor at Law, Mediator
5379 Satisfied Customers
17 years of legal experience including real estate law.