What can the bank tha holds the second mortgage do if we defalt on the loan but the first mortgage is current?
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What can the bank tha holds the second mortgage do if we defalt on the loan but the first mortgage is current?
Asked on August 20, 2012 under Real Estate Law, Georgia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The bank can indeed foreclose on the second mortgage even if the first is current. What happens in that situation depends on what the first mortgage holder wishes to do. They could step up and purchase the second mortgage or maybe the second can negotiate for the first, But they are both secured lenders and you need help if you intend on defaulting. Good luck.
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