What Happens If You Default on a Second Mortgage, or Defaulted Years Ago Without Knowing?
Even if you’re current on your first mortgage, falling behind on a second mortgage can still result in foreclosure. In many cases, people had a Second Mortgage that disappeared between 2008-2012, and they are now being foreclosed and the lenders are demanding exorbitant fees and costs. These are called “Zombie” second mortgages. Here’s what you need to know and how the law office of Ira J. Metrick can help you.
Your Home is at Risk for Foreclosure
When you default on a second mortgage, the lender has the right to foreclose, potentially putting your home at risk. Here are some key points to understand:
- The second lender can foreclose, even if you’re making payments on your first mortgage.
- Your first mortgage remains in place after the second mortgage forecloses. The property can be sold at Sheriff sale and the new owner would own the property, subject to the first mortgage.
- Even if you are paying the first mortgage, the second mortgage can foreclose, and you can be removed from your home.
Don’t face this alone. The foreclosure process is complex, but you have options. At the law office of Ira J. Metrick, we can review your situation and help you explore every option to prevent foreclosure.
What Happens to Your First Mortgage?
Even if your second mortgage lender forecloses, your first mortgage doesn’t go away. The new owner will be responsible for paying the first mortgage before they can sell the property, but you are still liable for both. Here’s what to expect:
- You are responsible for both mortgages until they are satisfied.
- The first lender can start their own foreclosure if they are not being paid.
It’s essential to have experienced legal guidance to navigate these complications. We can help you understand the full picture and ensure your rights are protected.
How We Can Help
Defaulting on a second mortgage doesn’t automatically mean foreclosure. At the law office of Ira J. Metrick, we will review your case and help you understand your rights and options. There may be additional strategies available for you to avoid foreclosure. Call our office so we can better understand your case and provide proper guidance.
A “Zombie” second mortgage is a mortgage that disappeared years ago when your property value was low and has now come back to haunt you now that property values have risen. There can be claims for violation of the New Jersey Consumer Fraud Act (NJCFA), The Truth and Lending Act (TILA), and the Fair Debt Collection Practices Act (FDCPA) when a second mortgage does not send monthly statements for years and attempts to foreclose and collect interest or fees that accrued during the time no monthly statements were sent.
Contact Us Today
If you have defaulted on a second mortgage or are facing foreclosure, contact the law office of Ira J. Metrick today. We will review your case, explain your rights, and guide you through your options to protect your home. Don’t wait—reach out for a free consultation and let us help you save your home.
