Question On 2 Morgages And Foreclosure?
lets say someone only pays on the first mortgage and not the second. Lets say the first is 125,000 and the second is 30,000. If the second isnt paid on, they will want to foreclose on the house to get thier money back--so would they sell the house for 30,000? If so, what about the first mortgage, who could afford 125k? what would happen?
Second could ask 20 25 or 30, depends on the company. Once you purchase the second you need to payoff the first or make the payments because you now own the property(no redemption being assumed). The first can still foreclose if the loan goes into default, then you lose your investment.