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Our home had two mortgages. It foreclosed a year ago, but the second mortgage is open. We believe that bankruptcy is the only way out of it but does anyone know any other way out of it? We don’t know any details of how much the first mortgage got for the home and why the second didn’t foreclose. By-the way, the home was in VA.
Thanks for your responses.

4 Thoughts on What do I do about my second mortgage that didn’t foreclose?
  1. Reply
    Expert Realtor
    March 18, 2012 at 5:42 am

    It would be nice if you posted whether or not your primay residence was sold or not….if it was and it didn’t cover the second mortgage then your only choices are bankruptcy or to pay it off.

  2. Reply
    Freddie
    March 18, 2012 at 6:02 am

    If your first mortgage foreclosed on the home, then it exercised its rights of being in the first lien position. Essentially what happens here is that one company is first in line, the next company is second in line to claim whatever value the home has.

  3. Reply
    goz1111
    March 18, 2012 at 6:50 am

    The reason the second did not forecloses probably is because the house did not have enough equity to cover the first note, so why throw good money after bad

  4. Reply
    godged
    March 18, 2012 at 6:52 am

    If the home secured the debt, this should have been discharged in the foreclosure, as there is nothing to secure the debt at this time. Contact the lenders and ask what happened to these mortgages. I suspect the second was cleared, but there is a paperwork glitch somewhere.

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