Real Estate Law
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HelloThis is Samuel. Yes, a second mortgage holder can foreclose, even if you are current on your first mortgage. Just like any type of loan, if you are behind on your payments, the lender has the legal right to take whatever property was offered as collateral on the loan. In the case of a second mortgage, that means they have the right to foreclose on the house and sell it to recoup their losses.I am unclear on the second part of your question. Would you rephrase it for me, please. Thank you
Are you asking since you haven't paid them can you dissolve the loan and thus remove the lien? That answer is no. The loan will be in effect and attached to your property until paid. If you sell the property, the second lender will need to be paid for a clear title to pass.
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Thank you for the clarification of the second part of your question. You are correct. They cannot file a foreclosure. However, the lien stays against the property that was put up as "collateral" for the loan, which by the way has interest compounding on the balance as per whatever your loan agreement is. Therefore, even though they are time barred from foreclosing the lien will still need to be paid off before you get any proceeds from your home if and when it is sold.