Is that just part of the process, always? If so, what is the advantage to a 2nd attempting to foreclose when the property value is less than the value of the first? What can they possibly gain if they will have to spend time and legal fees to end up with a home they will sell at a loss? Say the 2nd gets an appraisal that shows the value is higher than it really is. Do they do any verification? I ask this because several weeks ago there was a man taking pictures of our home, who when approached by a neighbor made mysterious comments about "If you only knew what was really going on". Now a month and a half later BOA sends a Notice of Intent to Accelerate. An appraisal from the street wouldnt show the water damage to the home or the leaking crawl space that our appraisal showed, so maybe they have a false sense of making a profit. If so, is there any way to convince BOA that it really is not in their interest to follow through?
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1/15/10 Filed ch7 2/18/10 314 meeting
2/22/10 Report of No Distribution
4/20/10 Discharged 5/20/10 Closed! -
To my knowledge, a 2nd lender does not have to buy out the 1st to foreclose. Also, if your 1st mortgage exceeds the value of the property, then the 2nd rarely attempts to foreclose because they'll obtain nothing from the proceeds of a sale and will only create additional costs.
If they fully intend to accelerate the loan then you may be forced to stop that with a Chapter 13; a Chapter 13 may allow you to strip the lien. Definitely chat with an attorney about that possibility.
Regards,
Jeff -
All priority mortgages must be satisfied in a foreclosure process, so yes a 2nd would have to pay off the first before realizing any proceeds. Now it's possible the 2nd could work something out with the first, but the first will get satisfied before the 2nd can realize any proceeds from an eventual sale..Comment
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