I have a foreclosure situation in the family where the value of home $50K below 1st mortgage balance. If house sells, no way the 2nd mtg is getting a dime-home values in area have plummeted over past 10 years. Now, i know that 2nd mtg holder CAN bring foreclosure and the 1st has the right to step up and purchase the 2nd loan...but question is will they do it when their own mortgage is underwater?
The family can start paying 1st mortgage. What if they start paying. Will the 2nd initiate foreclosure? Both liens are serviced by BofA. Thoughts?