Worried About Your Second Mortgage?
In most cases second mortgages and HELOC’s (Home Equity Line of Credit ) are synonymous. The difference is that a mortgage refers to the legal lien instrument rather than the debt itself. A property can have multiple liens against it. The loan registered or recorded first is called the first mortgage. The lien registered second is the second mortgage or HELOC. A third or fourth mortgage can exist but this is rare. Anything after the first mortgage is “junior” or “subordinate”.
A second lien holder rarely forecloses even if there is equity as they would have to do so “subject to” the first lien which means having to satisfy the first lien to obtain clear and saleable title. This route is extremely costly and risky to a second lien holder.
The law determines what happens to the proceeds of a sale. Specifically, the first lien position is paid first; it does not dictate what a lender may do of their own volition, hence opening the door for negotiation and mortgage settlement with junior liens. A mortgage settlement can be reached with the second lien holder before or after charge off and regardless of the status of the first lien. Considering the alternatives above settlement is typically more favorable to a junior lien holder . The benefits of settling to the homeowner are even better and may include restoration of some equity by alleviating the over encumbrance, improved housing to income ratio, release of the lien and disposal of the monthly mortgage payment upon settlement.
There are NO UPFRONT FEES AND $0 COST TO YOU until we obtain an offer from your second lender or servicer AND the offer if accepted by you. If you reject the offer, you do not have to pay us. Our mission is to help you recover an equitable position with respect to your home and turn things “right- side-up”.
For a free consultation with a Mortgage Analyst
call (888) 825-4796
MY DEBT COMPANY IS NOT ASSOCIATED WITH THE GOVERNMENT, AND OUR SERVICE IS NOT APPROVED BY THE GOVERNMENT OR YOUR LENDER. EVEN IF YOU ACCEPT THIS OFFER AND USE OUR SERVICE, YOUR LENDER MAY NOT AGREE TO CHANGE YOUR LOAN.
