Posted by John Merchant on October 28, 2008 at 12:07:48:
When the bank sells the note, the DOT or Mtg goes with it, giving the note holder the right to proceed to foreclose if there’s a default.
So no matter if it appears the bank screwed up and didn’t do it right, if the note debtor is in default on his loan, the current note holder is going to be within its rights to foreclose on the security property.
The note debtor is relying on false and flimsy hope if he believes the bank cannot foreclose if/when he’s delinquent.
i got a letter from the mortgage co their is no second
mortgae i am in foreclsoure it is a rental and the letter say the note holder is totaly different than the mortage holder thank you
Priority of forecl of 1st & 2d mtgs. - Posted by John Merchant
Posted by John Merchant on October 27, 2008 at 15:58:18:
Mortgage co and note holder are normally same people.
If you mean in a case where there’s a 1st mtg with a bank and a 2d mtg to another lender, maybe the seller, either can foreclose on its mtg.
If the 1st mtg co. forecloses then the 2d note holder-mortgage has the right to be notified, to be there and bid on that 1st mtg note and if 2d note holder does NOT, then his mtg is wiped out…not his 2d note, but his mtg is then gone.
If 2d mtg holder forecloses he still has to pay the 1st mtg holder or lose the property if he doesn’t do so.