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amiesheikh · 07-26-2009, 03:16 PM

As long as the home is still in your name and you own it, the second trust is second in line for payoff if the home gets foreclosed (that's how it is in VA anyway, probably similar in CA but look up the foreclosure laws). If you owe more to the first than the home is worth then the second will get screwed and get nothing if the home gets foreclosed. The first trust would be first in line to get any proceeds from the home at a foreclosure sale. If naything is left over it goes down the line to pay off debtors that have a lein against your property (ie the second trust, HOA's etc.) If they are allowed to (depending on the state laws), then the second may sue you for the deficiency.

Are you attempting a short sale?

07-26-2009, 03:16 PM	#6 (permalink)
amiesheikh Member Join Date: Jul 2009 Location: Northern VA Posts: 22 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Help!!!! Second mortgage troubles As long as the home is still in your name and you own it, the second trust is second in line for payoff if the home gets foreclosed (that's how it is in VA anyway, probably similar in CA but look up the foreclosure laws). If you owe more to the first than the home is worth then the second will get screwed and get nothing if the home gets foreclosed. The first trust would be first in line to get any proceeds from the home at a foreclosure sale. If naything is left over it goes down the line to pay off debtors that have a lein against your property (ie the second trust, HOA's etc.) If they are allowed to (depending on the state laws), then the second may sue you for the deficiency. Are you attempting a short sale?