If there is very little equity in the home. (maybe $30,000) and there is a first and second to the primary mortgage company and an SBA lender has a lien behind that. What are the chances that the SBA lender will be able to force a foreclosure?
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Not likely. A lien is against the sale of any equity you would get after the two mortgages are satisfied. Now either mortgage can force a sale, and the lien holder waits for whatever proceeds beyond their expenses. If the second mortgage sues to foreclose, IT must pay off the first mortgage first. However, if the first mortgagor wishes to foreclose, it leaves the second one out in the cold. 'HubIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010. -
Thats what I though but...
The lawyer is saying that staying in the house depends on what the SBA lender does. That is what is unclear. I would have thought they would have had to wait until the house was sold before they could get anything. The lawyer made it seem like a payment arrangement had to be made or to get them to agree not to try to foreclose.Comment
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