Will the following mortgage holders come after you or be able to place a touch (other than a foreclosure) on your credit like a judgement? Would they be ale to garnish wages or do anything idiotic like that in the future? The reason for two loans was a first and following (100% loan) was used to buy the home. The value dropped and the foreclosure auction will only be enough to cover the first mortgage and part of the following. If you could site any websites that show these types of laws it would be appreciated. Thanks.
Oh and real examples would be fantastic. I’ve heard many people say yes they can come after you, but of those that have in fact been foreclosed on I’ve yet to hear one of them tell me an actual horror tale. This could be because many following lien holders use dread to get some people to pay them money and salvage some of their loss.
coragryph, keep in mind the 2nd was used as buy money, so it was not a 2nd mortgage that was “taken out”. Also, have you in fact heard of this happen or only studied it? Thats what i’m result out, that most lenders don’t go through with that, as they end up getting nothing after spending all the money to legally fight it and most individuals could file BK to dodge it.