Can a equity loan lenderwho is a second leinholder on my home, sell it out from under me for past due payments?
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Can a equity loan lenderwho is a second leinholder on my home, sell it out from under me for past due payments?
Can they do this over my mortgage company who is first lienholder?
Asked on January 1, 2012 under Real Estate Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you are in default under the second trust deed securing a loan on your home, the lender can have a foreclosure sale on the second. If that happens, the lender in second position is obligated to continue making payments on the first trust deed (or mortgage). If not, then the second lender runs the risk that the lender in first position may foreclose on the first trust deed or mortgage.
In your situation, if the lender in second position is successful in foreclosing on its loan, you then lose title to your property.
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