Are the underwriters right to be concerned about deficient 2nd mortgage threat 4 years post foreclosure?

Get Legal Help Today

 Secured with SHA-256 Encryption

Are the underwriters right to be concerned about deficient 2nd mortgage threat 4 years post foreclosure?

1st mortgage was settled through foreclosure sale of our home, 2nd received nothing. Can they sue us and cause more than a blemish on our credit report?Can they garnish wages, take any new home we should buy in the future or other assets? We never filed bankruptcy. We settled our debts and rebuilt our credit. Attempting to get a home loan now and all looks great, until the underwriters come across our old 2nd mortgage, listed as a “past due” amount on our credit report of $66,000. Should it read “past due” or “foreclosed”?

Asked on August 25, 2012 under Real Estate Law, Michigan

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Please take all of your paperwork to ana ttorney to review. This actually sounds much more complicated than what you may think.  One needs to see the paperwork involved and what happened to the second in foreclosure: were they named?  If it is on your credit report then my gut tells me it was not settled as you might have thought.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption