BK When Holding Non-performing 2nd Mortgage
HELP!!
Question: Friend owns a 2nd mortgage on a property. Owners on that property have defaulted on her 2nd for 4 years. Is there a chance that this non-performing 2nd could be taken from my friend when she files BK?
Thank you for your help 
Is your friend filing BK, or the person who is defaulting on the second?? Seems like a dumb question, but please clarify that it is the person who is defaulting, not your friend that is filing BK. Has the BK been filed yet? Or are you just concerned they will file the big B.
Has your friend started the foreclosure process any time in the last 4 years?
How much is the 2nd for? If it's a couple thousand bucks, it may not be worth messing with it, because it'll get eaten up in legal fees. If it is large, start the foreclosure process ASAP, try to get the house, or at lease some $$. Speak with an attorney about the best route.
Sam
Thanks for your reply. My friend is considering filing the BK, not the defaulting noteholder. She never has started the foreclosure on her 2nd in the 4 years it has been defaulted on. The amount of the 2nd is about $20,000.