There is not Statute of Limitation on 2nd mortgages, it is contract note promise to pay. They the 2nd will probably not foreclose because they would have to pay off the 1st mortgage to do so. Very Very unlikely but could be hunting later down the road. They can sue you and garnish wages since this (is was) a recourse loan. This means you got cash or paid off debt etc. meaning you benefited from the loan. I can you help you settle the debt for 1-5% of the principal balance for a flat fee no money up front only after completion. Or short sale the property. Best of LuckRyan Michael ROMERORyan Michael & AssociatesP 619 884 9116F 888 308 7775www.rmfundinggroup.comwww.rmloanmods.comwww.cstonemortgage.comCA DRE 01810267NMLS 333803REALTOR(R) 1965810"Experience is what causes a person to make new mistakes instead of old ones."May 8th 2012
This is a question that is best answered by an attorney. There are other people who will SCARE you into their services (see post below), however these tactics have very little weight... In California, the Statute of Limitations on written debt is 4 years from the last action (payment, default judgment, or foreclosure). This doesn't mean you no longer owe them.. it just means that they can no longer take a legal action to collect.. Such as wage garnishment, bank levies, default judgment, or liens... Because the note is in second position, they would have to pay off the first in order to secure their position, and since your 50% underwater based on the first note balance, it's very unlikely they would... Keep in mind that if you no longer are paying them it could remain on your credit as an "open account, currently in default", which could prohibit you from getting any other type of financing in the future.. you can attempt to contact them and make a onetime cash settlement offer, even if it's a one to two thousand dollars, it's more than they would ever get otherwise, so it's very likely they would accept it, and it would close that account.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.comMay 8th 2012
You could seek the counsel of an attorney, but I wouldn't waste the money. Because the debt is secured against your home, the debt will continue to accrue interest as long as the lien exists, and ultimately you could be forced to pay the entire amount, including the accrued interest. Eventually, you will want to sell or property values will recover to the extent that the second holder will resume pursuing you. It is possible that you could remove the liability through Bankruptcy. If you can afford it, they may be willing to accept pennies on the dollar just to make it go away, otherwise, this dog you until you make some sort of deal with them, but it's not going to go away just because it gets old. Sorry. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.comMay 9th 2012
Most of us here are licensed loan officers - not attorneys. YES, they can foreclose, bu the 2nd mortgage will usually not foreclose because they would have to pay off the 1st mortgage to do so. They will be very patient in getting their money. The 2nd mortgage is destroying your credit, and eventually they will collect, as the home will never be able to be sold without paying off the 2nd.May 9th 2012
The second can foreclose, but most likely will not. They may sell it off to a collection agency as well. It does still remain on title and and accumulate interest. So it is not like it will go away completely. I would try and settle with them for 20% of what you owe if you have the funds. www.guidetomortageplanning.comMay 15th 2012
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