I'm 3 months behind on my home equity payments. today I got "Notice of right to cure default (real estate)" letter saying I'm default and I should pay the outstanding balance by 01/25/2010 otherwise, it says to accelerate credit obligation and exercise rights and remedies against me including initiating a foreclosure action or procedure to sell the real estate that secures my credit obligation.
I'm actually working with negotiator on settlement.... it is still under negotiation.
My questions are
1) Do I need to worry about this letter?
2) Can 2nd mortgage sell the real estate as their wording says?
3) I'm going through loan mod with my 1st mortgage so does that affect with this? fyi, If my primary mortgage loan modification doesn't work out even this also going to go to foreclosure unless I get any offer (shortsale) from any buyer within next 4 weeks. Unfortunately, I don't have any other options.
4) Can 2nd loan (HELOC) initiate foreclosure and proceed with that?
I'd really appreciate any help with these questions.