Real Estate Law
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Good morning, and thanks for contacting Just Answer with your question. Assuming that PHH holds the second mortgage, and the property is not worth much more than the balance of the first mortgage, they are unlikely to force the issue of payment all the way to a foreclosure. If they foreclose and take title to the home, they will have to pay off the first mortgage and resell the property. They will be in the same boat that you are in now, and they realize that. Thus they are more likely to threaten foreclosure but not actually do it, especially if you are able to make some partial payment on that account. I hope that this information is helpful.