Real Estate Law
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in California can a 2nd mortgagee foreclose if they have not received payment in over 48 months? home is upside down with first 360k loan maybe can sell for 280k Response: Yes, they can. However, the foreclosure of the second mortgage does not extinguish the first mortgage. The first mortgage remains on the property until it is paid off. Also and more importantly, the purchaser at foreclosure of the second mortgage does not have any right to evict the homeowner unless the purchaser has made arrangement with the first mortgage lender to pay off the first mortgage.
am upside down on first by a lot the first would have to take a loss of at least 80k
they tell me both loans are owned by bofa
I am told that both loans are held by b of a
first is 360k that would need to be paid off home would net at most 280k
I guess b of a would have to loose 80k on first to get it paid off or would they have to pay it in full
guess b of a could do that 1st is current and has been for years
Response: If both loans are held by the same lender, it is doubtful that the second would foreclose. Also, if the first mortgage is current, it makes it quite difficult for anyone who purchases the second at foreclosure to try to evict. In addition, if the first is current, there is nothing to negotiate by the purchaser. Usually, the first is also late and then the purchaser of the second would try to negotiate with the first lender for the payment on the first. The amount that is ultimately paid under this arrangement would be less than the amount owed.