Can the Second Mortgage Holder Foreclose?
Yes. While a second mortgage holder may have the power to foreclose, they almost never take this course of action unless there is a significant amount of equity in the home. In order for a second mortgage holder to foreclose on your house in Georgia, they must first pay off the first mortgage holder. Most second mortgage companies are not willing to take the risk of paying off the first mortgage and then failing to recoup their investment at the sale on the court house steps. With the current depressed values of real estate, I don’t foresee second mortgage holders conducting foreclosures anytime soon.
If a person fails to make payments on their second mortgage but continues to pay the first mortgage holder, the second mortgage holder can sit back and wait for the first mortgage holder to be paid off. After the first mortgage is paid off, the second mortgage holder assumes the first position and can then conduct a foreclosure.
Chapter 13 is a great tool for catching up past due mortgage payments. Call me today at 706-295-0030 for your free consultation so that we can discuss your options.