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Posted by Ward-CA- on April 30, 2002 at 21:50:33:
In Reply to: Paying the first mortgage but not the second posted by Kevin on April 30, 2002 at 18:35:21:
: I have a no-equity second mortgage. I was laid off in January, and the money has run out. I've enough money for the first mortgage, but not the second. Even when I do find a job, it looks like the pay I'll be receiving won't be enough to make both payments.
: I am current on both at the moment, having never missed a payment.
: What would happen if I continued making the first mortgage payment but not the second? There's really no equity at all in the house, so the second would lose money in a foreclosure, but will they do it anyway?
: Thanks,
: Kevin
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Kevin, every mortgage has the independent ability of starting their own foreclosure for non-payment. So I’d expect that at some point the 2nd would initiate their foreclosure when you make no more payments.
Sure, maybe there isn’t enough equity in the property to pay off the 2nd if they foreclose. But maybe they’d hold you personally liable for any deficiency that occurred via the foreclosure sale and disposition of your home and come after you via a wage garnishment, etc. when you resume employment.
In all honesty there’s no telling what a lender is likely to do under the circumstance you posit.
Good luck.
