Re: Yes.

Posted by Jim V on October 23, 2002 at 02:32:02:

In Reply to: 2 mortgage posted by chris jenkins on October 22, 2002 at 17:17:00:

Typically, any default on a first note will place the second in default. Commonly, the second will reinstate the first with the default amount added to the total amount the second is owed.

It is also possible for the second to allow the first to proceed to foreclosure sale by not reinstating, then they will attend the sale and bid high enough to either obtain the property or insure their second is paid off.

Additional possibility of the second doing nothing, allowing the first to foreclose and their interest is removed from the title of the property.

It's extremely difficult to predict actions of second lien holders. Some are very active, others seem oblivious.

Hope that helps, if not, ask additional questions, I'll take a crach at them.

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Comments:
: Typically, any default on a first note will place the second in default.  Commonly, the second will reinstate the first with the default amount added to the total amount the second is owed.

: It is also possible for the second to allow the first to proceed to foreclosure sale by not reinstating, then they will attend the sale and bid high enough to either obtain the property or insure their second is paid off.

: Additional possibility of the second doing nothing, allowing the first to foreclose and their interest is removed from the title of the property.

: It's extremely difficult to predict actions of second lien holders.  Some are very active, others seem oblivious.

: Hope that helps, if not, ask additional questions, I'll take a crach at them. 


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