QUESTION
If a company goes in a forbearance agreement with bank. Who is responsible for second mortgage?
Asked on Sep 21st, 2012 on Foreclosures - Washington
More details to this question:
Who is in a forbearance agreement if either party has to pay off a second mortage if there is no money?
4 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
Normally a forbearance rolls over the missing payments to the end of a loan. If you are trying to work out two loans you need to work with both lenders. It is advisable for you to talk to a real estate attorney in the state where the property is located. I hope this helps.
Answered on Sep 24th, 2012 at 2:34 PM
Criminal Defense Attorney serving Deltona, FL
at
R. Jason de Groot, P.A.
Update Your Profile
The homeowner is responsible for paying a second mortgage, an agreement with the first mortgage lender does not affect that.
Answered on Sep 24th, 2012 at 2:33 PM
1 Award
Who is the forbearance agreement with, the first or the second? If the first, it has no effect on the second. The second can proceed with its own foreclosure, but won't if there is no equity in the property. Moreover, in Ca. the second can only foreclose-second can't come after you personally if the money borrowed from the second was used to purchase the home and you live in it. If the money was not used to purchase the home, the second can't come after you personally until after the first forecloses.
Answered on Sep 24th, 2012 at 2:32 PM
Civil Litigation Attorney serving Federal Way, WA
at
Stasch Law LLC
Update Your Profile
A forebearance agreement is a temporary reduction in mortgage payments but the difference between the reduction and the actual mortgage payment will have to be made up in the future. Is this a commercial property or residential. The party responsible for the mortgages (1st and 2nd) is the party which signed the deed of trust. Unfortunately, if the first mortgage forecloses, someone is still liable on the second. The second survives foreclosure as a unsecured debt.
Answered on Sep 24th, 2012 at 2:32 PM