My vacation home is being foreclosed, will the second note holder come after me?
Question Details:
My second home is being foreclosed by the first lender who has a $1M note. The second note holder, is going to get wiped out. They have a $350,000 second note. The second was not purchase money, but a HELOC, that I used to renovate the property (secured several years after I purchased the property). Is it likely that second note holder will come after me as a sold out second? I had a strong financial statement when I secured the refinance, mostly equity in real estate. Most of my real estate is now upside down. I have no equity in primary residence.
Real Estate Law Answers
They are very likely to come after you. With that amount of debt and the security wiped out, I cannot imagine them not persuing you until you pay them or they force you into bankruptcy. I hate to deliver that gloom and doom, but having represented banks for years, there is no way my bank clients would walk away from that unless it was discharged in bankruptcy.
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