Second Mortgage and Government Help to Stop Foreclosure

Having to worry about a foreclosure on your home is something nobody wants to think about, but if you have a second mortgage, it can muddy some already murky grounds.  I recently faced such a possibility and got help at Credit-Yogi finding out how to stop a foreclosure and what to do about my second mortgage.  There are several ways to go about it, but here are some important facts:

• Ways to Stop Foreclosure

• What Happens to a Second Mortgage After Foreclosure

• Second Mortgages and Government Help to Stop Foreclosure


Ways to Stop Foreclosure                                                                                                                                    

The first thing you want to do is consult a professional to help you understand your options for your second mortgage after foreclosure, but keep the lines of communication open between you and your mortgage holder.  When you consult a real estate lawyer, or other foreclosure expert, they can help you decide which course of action is best for you, but the short list of options to stop mortgage foreclosure is:


1. Loan Modification such as HAMP

2. Short Sale

3. Bankruptcy

4. Refinancing

5. Produce the Note Strategy

6. Forbearance Agreement

What Happens to a Second Mortgage After Foreclosure   
                                                                     

In the foreclosure process, a second mortgage is considered inferior to a primary mortgage, and often there is not enough to go around to pay off the secondary mortgage. It is generally discharged in the foreclosure proceedings, and the second lender often goes after a deficiency judgment to recoup their losses, but there are other options open to them as well, and your advisor can help you understand them.

Second Mortgages and Government Help to Stop Foreclosure  
                                                                     

In addition to HAMP, there is a Second Lien Modification Program (2MP) that can help if your second mortgage holder is a participant.  In 2MP, the lien holder must offer to either modify your second lien or accept a lump sum from the Treasury as payment in full for the lien.

So, as you can see, this is an extremely complex issue, and just as I did, you need to be sure you get the best help available.  Why wait?  Take advantage of the help you can get here with no obligation at all to you, and get started today!

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