Re: second mortgage foreclosure

Because of your timing, you should immediately consult with an attorney in your county who has real estate, foreclosure and mortgage modification experience. It is critical that you have legal counsel in this situation.

It is impossible to give you answers without a review of all of your mortgage documents, notices that you have received, and the proposed modification documents.

Good luck.

Re: second mortgage foreclosure

Generally, a sale of your property cannot occur without notice to you. However, if the mortgage company followed the proper procedures, it is possible that a sale occurred without your having actual notice of it. I am currently representing someone in that very situation. He was unaware that a sale was to occur and he was required to file a petition to set aside the sale. The issue has yet to be decided.

You should first check with the sheriff's office of your county to confirm the status of any sale. Was one scheduled and did it occur? If the answer to both questions is "no", both liens remain on the property and you are still the owner. In that event, you are free to make any deal you wish with either or both lienholders. However, each lienholder retains its state law rights to pursue foreclosure absent an agreement with you.

If the second mortgage is willing to satisfy the mortgage for a payment of $730.00, that may be a deal you should jump at. Also, be careful when signing anything with the first mortgage as they could prohibit you from filing a bankruptcy. If you default in the new agreement, you could preclude yourself from filing bankruptcy to save your home.

If a sale is scheduled, but has not occurred, you must act promptly to assure you do not lose the property. One potential remedy is a Chapter 13 bankruptcy which will stop any foreclosure and prevent any sale. In a Chapter 13, you must begin making monthly mortgage payments to both lienholders and a plan payment which is designed to cure any defaults.

If a sale has occurred, your only legal remedy is a petition to set aside the sale, which must be filed before delivery of the deed. If you choose not to exercise that option, whoever became the owner will be able to evict you and you should plan to move as soon as possible.

I strongly suggest you speak with experienced counsel at your earliest opportunity to receive advice on all of your options.

I trust this has been helpful, but feel free to call or e-mail for a free initial consult.