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can a bank foreclose on the first mortgage if the 2nd mortgage is current

by golfbum2013636 from Riverside, Illinois. Aug 25th 2015 Reply


Ron McCulloch (ron@ronmcculloch.com)
#160 ranked lender in Arizona - 5 contributions

Yes they can. The second mortgage would be lost in the foreclosure as the first is a superior lien position.

Aug 25th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,055 contributions

Each mortgage holder has the right to foreclose if the loan is in default.. but the first wont hold off on foreclosure just because your paying your 2nd but not the first.. the reason there are deeded positions (1st, 2nd, etc) is because there is an order of precedence when it comes to notes.. if the first forecloses, and if the proceeds from the sale are less than what's owed on the first, the 2nd position get's nothing.. the first mortgage is the senior mortgage and all sale proceeds get applied to the first position.. if the proceeds are more than what the 1st was due, then the excess would apply to the 2nd loan.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Aug 25th 2015
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Kay Cleland (kay@kcmortgagecolorado.com)
#32 ranked lender in Colorado - 215 contributions

Yes a bank does have the ability to foreclose if the first mortgage payments have not been made.

Aug 25th 2015
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Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

Yep. If you are not current on the first they have the right to foreclose

Aug 25th 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 598 contributions

Most definitely they can. If one is to be late on a mortgage it is better to always pay the first. More difficult for a second mortgage company to foreclose on a home as they may get little to nothing because the first lender is still in control of the process.

Aug 26th 2015
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