Posted by twinkie on October 08, 2004 at 20:29:15:
Thank you so much for responding.
The bank is still accepting payments and in fact indicated in their default letter that I continue to make timely payments. They have not filed a foreclosure suit yet. However, I am fairly certain that they will. Their letters have been very detailed and concise. They are not generic in nature. Their last communication included ALL of the closing paperwork that was sent to them by my default borrower. She even sent them the late notices that I sent to her. This woman is absolutely a loose cannon.
I have hired an attorney. However, I don’t want to risk the damage of a foreclosure on my credit or even a default being reported on my credit. My credit is pristine and it’s my #1 marketing strategy. Therefore, I was planning to at least payoff the 1st mortgage by their due date of October 29th but I don’t want to have to payoff the 2nd mortgage.
This is the state of Georgia so it’s Non-Judicial Foreclosure. I’m concerned that they will just go forward and try to foreclose on the 2nd mortgage even after I payoff their 1st mortgage. How do I stop this without suffering them reporting damage to my credit?
1st mortgage lender calling 2nd mortgage due - Posted by twinkie
Posted by twinkie on October 01, 2004 at 14:38:49:
i owner financed a home “subject to”. the borrower has never paid a cent so i have begun foreclosure. in retaliation the borrower informed the bank that i had sold the property. the bank is now calling the loan due (i have NEVER been late with the bank). the bank has called both the 1st and 2nd mortgages due. however, the bank sold the 2nd mortgage right after closing. the bank does not have any ownership in the 2nd mortgage bank. can a 1st mortgage lender call due a 2nd mortgage that it no longer owns? if so, on what grounds? if not, how do i fight them from calling 2nd mortgage due.
Re: 1st mortgage lender calling 2nd mortgage due - Posted by JohnBoy
Posted by JohnBoy on October 07, 2004 at 22:03:32:
If the bank sold the second then I don’t see how they can call anything due, muchless foreclose on a mortgage they have no legal rights or interest in. That would be up to the lender that owns the note. Not the lender that sold it.
Is the bank still accepting the payments or are they sending them back?
Have they actually filed a foreclosure suit or are they just threatening to foreclose if you don’t pay off the note?
If they are still accepting payments and they haven’t actually filed a foreclosure suit yet, just ignore them and continue sending in the payments. In many cases the lender will call a loan due and threaten to foreclose, but when push comes to shove they will do nothing if the payments are current and continue to be made on time.
The good thing is, now that the bank does know about the sale, and if they don’t enforce calling the loan and continue to accept payments, in the future they wouldn’t be able to come back later and call the loan based on violating the DOSC. You could defeat that in court by showing the bank knew about the transfer, continued to accept payments, and did nothing to enforce their rights under the DOSC, thereby waiving the DOSC violation by accepting on going payments!
If the bank does actually file foreclosure and files a foreclosure suit to foreclose on the second they no longer own, all you need to do is respond to the complaint and motion the court to dismiss their complaint on the grounds they have no legal interest in the mortgage.
If they do file a foreclosure complaint then hire an attorney. S/he can take care of getting the complaint dismissed on the second mortgage, and buy you time to get something resolved on the first mortgage if need be.