Are the underwriters right to be concerned about deficient 2nd mortgage threat 4 years post foreclosure?
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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 11 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.
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