Holding 2nd Mort & Bank is actioning HOW?

[betwenrock&HrdP]

What is the name of your state?I'm in AL and helped a family buy our rental house in 1999. Took second mortgage on house and filed it. Family paid until 5/03 when husband had major stroke. Wife was going to just let the 1st mortgage lapse but, I started paying her mortgage to keep bank from forclosing until I could assume 1st from bank. We poured money and labor into house to get it rentable again and family emergencies prolonged the assumtion. Six months ago we attempted to complete the assumtion and the bank would not cooperate. She said that the bank told her that they could not do that. The 1st was assumable but, she had started bankruptcy proceedings. Spoke with her lawyer and he told me that property could not be transferred within one year preceeding bankruptcy but, he was going to talk to bank and bankruptcy judege due to us holding second on house to see if we could do that. We stopped making house payment because he said that we were stupid and all of the equity was going toward her and we would not be able to add it to our 2nd mortgage balance. He tried milking us for $2000 to pay her bankrupcy fees to him and we refused. Yesterday, six months later, the bank sent notice of auctioning the house next month. Upon getting notice, we called bank and they told us that the house had been dismissed from bankruptcy proceedings but, they did not know of our 2nd mortgage on it. How can they do that and we not get any type of a notice when in bankrupcy? And can the bank auction the house to the public with our lien still on it? I faxed the bank a copy of the 2nd mortgage today. What is our legal recourse?

 

[seniorjudge]

"And can the bank auction the house to the public with our lien still on it?"

Yes; your lien is junior to the bank's lien. Your lien will be wiped out by the foreclosure.


"What is our legal recourse?"

Buy the house at the foreclosure sale, then kick out the tenant, then resell it.

 

[betwenrock&HrdP]

What good is having a second mortgage?

What rights do second mortgage holders have if it will be wiped out by a foreclosure? They owe me 1/3 of the value of the home. Does being the second mortgage holder give me any rights in buying it when the first mortgage holder auctions it off?

Common sense leads one to believe that the second mortgage holder should be able to have first chance to pay off the first.

Please explain to me what good a second mortgage is if it is just wiped out when the house is foreclosed upon by the first mortgage holder.

 

[seniorjudge]

"What rights do second mortgage holders have if it will be wiped out by a foreclosure?"
Answered in first post.

"Does being the second mortgage holder give me any rights in buying it when the first mortgage holder auctions it off?"
Answered in first post.

"Common sense leads one to believe that the second mortgage holder should be able to have first chance to pay off the first."
Why?

Please explain to me what good a second mortgage is if it is just wiped out when the house is foreclosed upon by the first mortgage holder.
I do not know; you are the one who loaned the money.

 

[betwenrock&HrdP]

Well, I guess I got my money's worth

"What rights do second mortgage holders have if it will be wiped out by a foreclosure?"
Answered in first post.

NOT answered in first post.

"Does being the second mortgage holder give me any rights in buying it when the first mortgage holder auctions it off?"
Answered in first post.

Again, NOT answered in first post.

"Common sense leads one to believe that the second mortgage holder should be able to have first chance to pay off the first."
Why?

Usually, those who do not have any common sense ask, "Why?" to common sense questions. That places you.

Please explain to me what good a second mortgage is if it is just wiped out when the house is foreclosed upon by the first mortgage holder.
I do not know; you are the one who loaned the money.

The first part of your answer to this question sums up your expertise and that being, "I don't know". The second part of your answer shows that you are a condescending, smart-alecky, entertainer.

And finally, two last questions for you: Do jerks realize that they are jerks? And, Why don't you change your name to seniorjerk rather than seniorjudge?

 

[Florid-aise]

And finally, two last questions for you: Do jerks realize that they are jerks? And, Why don't you change your name to seniorjerk rather than seniorjudge?

I can answer these. On your first question, apparently not. Because SJ and I are mutual combatants in a frivoulous and flawed lawed suit in a heated and hotly contested battle over whether it will be me or that rascal who gets to use that name, that's why.

It's still mine, SJ, no matter what you say; so there >

 

[seniorjudge]

...The second part of your answer shows that you are a condescending, smart-alecky, entertainer....

You are correct here. My wife says the same thing and she is never wrong about anything!