Welcome to Mortgage Foreclosure Guide
Chase Mortgage Foreclosure Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Second Mortgage Foreclosure vs. a First Mortgage Foreclosure
from:Getting a mortgage is a large step for homeowners. Many make jokes about mortgages and buying their homes calling it "signing their life away". Although it's not quite that serious, taking out a mortgage loan is a huge step. You'll be agreeing to make monthly payments, which include principal and interest, for many years, sometimes up to 30 years. Often by time you've finished paying off your loan, you'll have paid for it two times or more with the interest included.
If the borrower fails to make the scheduled payments on time, they risk losing their home to foreclosure. No one comes out ahead in the foreclosure, not the lender or the borrower. Whether it's a first mortgage foreclosure or a second mortgage foreclosure, it's a big headache for everyone involved. Banks don't like having an REO (Real Estate Owned) on their record and borrowers don't want to lose their home.
In addition to losing their home, they'll have a poor credit rating for many years, which will make it difficult for them to get any credit in the near future. Regardless of whether it's first or second mortgage foreclosure, their credit will be affected the same. You probably understand what a mortgage and mortgage foreclosure is, but many are unfamiliar with second mortgages or second mortgage foreclosure.
An individual buys a home for $100,000 and has a $20,000 down payment. They then take out a mortgage loan for $80,000. We're assuming the home is worth at least $100,000 because banks usually borrow up to 80% of the appraised value of the home. A few years later, the borrower decides to take out a second mortgage. He may be having difficulties making his first mortgage payment and needs cash to be caught up or may also just need extra cash for some expense.
At this time, his home is appraised at $120,000 and his first mortgage loan balance is down to $70,000. He, therefore, has $50,000 of equity to borrow on his home. Following with the 80% rule, he can probably get a second mortgage for up to $40,000. The second lender's name will be on the mortgage under the first mortgage lender because the first has precedence on the loan. Therefore, at this time the borrower owes $70,000 on his first loan and $40,000 on the second loan.
If the borrower cannot make payments on the loans and the loan goes into first mortgage and second mortgage foreclosure, the first lender will get their money before the second. If the home is foreclosed and sold for $100,000, the first lender will get the $70,000 owed to them, with only $30,000 left so the second lender will only get $30,000.
If there is a second mortgage foreclosure but not a first mortgage foreclosure, the second lender may be allowed to make payments to the first lender. Unless it can't be avoided, try to avoid a second mortgage for all concerned.
Chase Mortgage Foreclosure Specific links
Chase Mortgage Foreclosure News
Community Housing Innovations (CHI) Will Host Free Fast Track™ Loan Modification Workshop; Chase Mortgage Holders ...
Community Housing Innovations (CHI), a HUD approved non-profit housing counseling agency, will host a free three day event to help Chase Bank mortgage holders who are having difficulty paying their loan move closer to a resolution through one-on-one meetings with Chase Bank representatives. The event will take place on June 12, 13, and 14 at the CHI offices located at 190 East Post Road in White ...
Read more...Foreclosure Prevention Event to Be Held Thursday
A group of mortgage lenders and nonprofit housing organizations will hold a free foreclosure prevention event in Milwaukee on Thursday.
Read more...'Mortgage Settlement' Funds Paying for Prisons, Not Foreclosure Relief
As part of a financial settlement over fraudulent mortgage practices earlier this year, some of the nation's largest banks agreed to make payments to state government totaling $2.5 billion that would be earmarked for victims of wrongful foreclosure and other distressed homeowners. read more
Read more...Lenders to offer foreclosure aid in Deerfield Beach
Three major lenders involved in the $25 billion mortgage foreclosure settlement will participate in a free workshop for struggling homeowners next month in Deerfield Beach.
Read more...Big banks to hold foreclosure prevention event in Deerfield
Three major lenders involved in the $25 billion mortgage foreclosure settlement will hold a free seminar for struggling homeowners next month in Deerfield Beach.
Read more...