1st loan foreclosure 2nd loan current, can they foreclose? - Loan Modification Forum

kbear78765 · 09-08-2009, 04:21 PM

Our loan was 80/20, adjustable arm. House was bought for $120,000 appraised at $125,000. We still owe $118,000 but the house only appraises for $100,000 now. Our 1st loan is behind 3 months and we have been sent papers stating that foreclosure papers are being drawn up. Our send loan is current. Both loans are being serviced by Ocwen, HSBC is the lender for the first not sure about the second. We have sent loan modification reqests to Ocwen and are awaiting a decision. If they decided to forclose on the first loan, what happens to the second loan? Are we resposible for the 2nd loan even though we will no longer own the house? We have no idea if the second loan is unsecured or not? Our loan was sold and serviced by ocwen before we even sent in the first payment, so until we got the foreclosure notice we didn't even know that HSBC owned the 1st mortgage. Can anyone please help and answer these questions. At this point with all the problems this house has we are just about to say forget it and let them forclose on it. THe loan is only in my husband's name, however I am on the deed.

09-08-2009, 04:21 PM	#1 (permalink)
kbear78765 Junior Member Join Date: Sep 2009 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	1st loan foreclosure 2nd loan current, can they foreclose? Our loan was 80/20, adjustable arm. House was bought for $120,000 appraised at $125,000. We still owe $118,000 but the house only appraises for $100,000 now. Our 1st loan is behind 3 months and we have been sent papers stating that foreclosure papers are being drawn up. Our send loan is current. Both loans are being serviced by Ocwen, HSBC is the lender for the first not sure about the second. We have sent loan modification reqests to Ocwen and are awaiting a decision. If they decided to forclose on the first loan, what happens to the second loan? Are we resposible for the 2nd loan even though we will no longer own the house? We have no idea if the second loan is unsecured or not? Our loan was sold and serviced by ocwen before we even sent in the first payment, so until we got the foreclosure notice we didn't even know that HSBC owned the 1st mortgage. Can anyone please help and answer these questions. At this point with all the problems this house has we are just about to say forget it and let them forclose on it. THe loan is only in my husband's name, however I am on the deed.

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