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 LawTalk Your Own Question

LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27991
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
15277592
Type Your Real Estate Law Question Here...
LawTalk is online now
A new question is answered every 9 seconds

I have a first mortgage with Chase that is in good standing

Customer Question

I have a first mortgage with Chase that is in good standing and current. Balance is 220K. I have a second mortgage (a home line of credit) HELOC that is with a local credit union that is in default and is going to be sold on the steps of the courthouse in late August total 60K.
If someone buys the second HELOC on the steps... and then they purchase my first mortgage from Chase as well... can they foreclose on me if I continue to keep my first mortgage in good standing?
The local bank termed this in their paperwork as follows "sometimes this is called foreclosure".
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  LawTalk replied 1 year ago.

Good morning Shauna,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

I think there may be a bit of confusion over what is happening here. The HELOC is foreclosing on your property---not selling the HELOC at auction.

When a second mortgage holder forecloses, the fist mortgage must be paid in full before clear title can pass to the buyer. However, title will still pass to the buyer---it will simply be subject to the first mortgage. If someone buys the property at the foreclosure sale, and then pays off the first mortgage, they will take good and complete title to the property. You will no longer be the legal owner, and you can then be evicted---just as you could if it were the first mortgage lender foreclosing.

You being caught up with the first mortgage does not protect the property from being foreclosed on by the second lender. It is just that the second lender cannot keep any proceeds of the sale until the first mortgage lender has been paid in full.

So, knowing this, if the second lender is foreclosing, they also likely intend to pay the first mortgage as well and then take title to the property and sell it.

I wish you the best in 2013.

I understand that you may be disappointed by the Answer you received, as it was not particularly favorable to your situation. Had I been able to provide an Answer which might have given you a successful legal outcome, it would have been my pleasure to do so.

You may reply back to me using the Reply to Expert link if you have additional questions.

Kindly take a moment to rate my service to you based on the understanding of the law I provided. Please understand that I have no control over the how the law impacts your particular situation.

Thank you,

Doug

Customer: replied 1 year ago.

Thank you for your help, I just need some clarification.


I cannot file a Chapter 13 to stop this as I won't be approved by a judge due to financial limitations. It is my understanding a Chapter 13 is your regular payment plus extra and paid off in 5 years... I can't do that.


Is there any other way to stop this besides bankruptcy and if not... you say they can evict me... about how long will this take after the sale.


 


In your experience, how often do you hear of someone buying a 2nd at 60K and then buying the first at 220K on a house that is upside down?


Thank you, shauna

Expert:  LawTalk replied 1 year ago.

Good morning Shauna,

You asked:

I cannot file a Chapter 13 to stop this as I won't be approved by a judge due to financial limitations. It is my understanding a Chapter 13 is your regular payment plus extra and paid off in 5 years...That is a correct statement of the process. I can't do that.

Is there any other way to stop this besides bankruptcy and if not... you say they can evict me... about how long will this take after the sale. No, short of paying the arrears, the lender can be expected to move forward.

In your experience, how often do you hear of someone buying a 2nd at 60K and then buying the first at 220K on a house that is upside down? If the property isn't worth $280,000---never. If the property is worth $300 or more, foreclosure is a good way for the lender to get most, if not all, of their money back.

You may reply back to me again, using the Reply to Expert link, if you have additional questions.

I wish you the best in your future,

Doug


LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27991
Experience: I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
LawTalk and 8 other Real Estate Law Specialists are ready to help you
Expert:  LawTalk replied 1 year ago.

Good morning,

 

Let me clarify just a bit, Shauna. If the property value is less than, but reasonably close to $280,000, so that the lender who forecloses can get more money than they think they can ever expect to collect from you---there is an incentive to foreclose, get what they can and write the rest off as a loss.

I have seen this occur, but not with any real frequency. Lenders are simply not in the habit of managing property, and buying and selling property is expensive to do.


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

Please feel free to bookmark the following link so you can request me to answer any future legal questions you may have:
http://www.justanswer.com/law/expert-lawtalk/

Thanks again.

Doug

When you receive your Customer Satisfaction Survey from JustAnswer, please do rate me highly (9-10) there as well. It would be tremendously appreciated.

Customer: replied 1 year ago.

Thank you Doug for the clarification, but I am still wondering how long will an eviction take... how long can I expect to stay in the home after the sale before evicted?

Expert:  LawTalk replied 1 year ago.
Good afternoon,

As soon as the new deed is filed, the new owner can demand that you leave---they are entitled to possession 10 days after the sale if they insist on it---- and if you do not, they can institute eviction proceedings---which would take several weeks before the sheriff could forcibly remove you.

So, if the new owner presses the issue, you could in theory have as little as a month after the sale before you would have to be relocated. I'm sorry.

Doug

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
LawTalk
LawTalk
Attorney at Law
4850 Satisfied Customers
I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.