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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Real Estate Law
Satisfied Customers: 19633
Experience:  B.A.; M.B.A.; J.D.
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I own a condo in MN which I purchased in 2005. I have an

Customer Question

I own a condo in MN which I purchased in 2005. I have an 80/20 loan(s). They were both 30 year loans with the first 10 years, intrest only. At this time, the condo's market value is 140K, while I owe 139K to Nationstar and approximately 39K to Citibank. Nationstar owns the 1st lien and Citibank owns the 2nd. I initiated the loan modification process with Nationstar and sent in the paper work. They assigned it to an officer who has never answered his phone or called me back during the whole process. I have made complaints to their serice line to no avail. My question is, if they deny my modification and I do a deed in lieu with Nationstar and just move on with my life, can the 2nd lien, Citibank, sue me for repayment of the second mortgage?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Phillips Esq. replied 1 year ago.

Regrettably, yes. Your obligation to the second loan lender is not extinguished with your arrangement with the first loan lender. You would still owe on the second loan.