A house in CA under water and in FC. Maket value for this property is even less than 1st mortgage balance, why 2nd lender is so eager to foreclose? 1st lender filed NOD in Feb 09. 2nd lender filed NOD in March, a month later. Owners filed for BK. 2nd lender filed for Relief from automatic stay. If 2nd lien holder will not be able to collect anything, why would they want to push for a foreclosure? What is their motivation? And will this cause any harm to homeowners? Thanks
I don’t know, but it is an absolute gift if the 2nd was a refi. If they foreclose they lose their right to try to collect from the owner, if on the other hand the 1st forecloses, the owner still owes the full amount. If it’s a refi just make sure they foreclose before the 1st - even if it means making a payment on the 1st. Well worthwhile.