I Am Behind On My Second Or Third Mortgage Will They Take My Home
Many people end up taking a second or third mortgage in order to meet some other financial commitment. |
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Some people also resort to taking more than one mortgage in order to make home improvements or do some repairs that increase the value of their homes in the market. While it makes sense to take a second or third mortgage for these reasons, it can also prove to be a disaster if you are unable to meet the payments.
The question that people usually ask is that if they are behind on their second or third mortgage, will the lenders take away their homes. The answer is a simple yes. Even if you are in good standing with the repayment of your first mortgage, by defaulting on your second or third mortgage, you risk having your home foreclosed. However, the good news is that in order to repay the full amount of the mortgages, the payments will be made in order of the mortgages taken. Therefore, the third lender will paid last and that is why this lender will think twice before initiating foreclosure as the amount left after paying the other lenders may be insufficient. So, if the property is foreclosed and sold, the third lender might become an unsecured lender, which is something he will not want.
Therefore, the best alternative in front of you to gain some time in the foreclosure process is to file for bankruptcy. However, a bankruptcy lawyer should be consulted in this process to ensure that things workout in your favor.
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