80/20 Loan in MI forclosure?
We have an 80/20 loan. We received notice that the first loan was being foreclosed on and we didn't owe any money. What happens with the 20 loan? Both loans are through Wells Fargo.
I'm sorry. We are deliquient and accepted that we will be walking away. I want to know what usually happens with the second mortgage. It was considered a "home equity" loan.
- Anonymous1 decade agoFavorite Answer
Usually it gets written off, they don't get any $ for the 2nd loan. Just be very careful when you let it go, try and make a deal with the bank for "cash for keys"..if you move out, they give you up to $1000 to take possession of the property early. Also, make sure you try for a short sale/deed in lieu and they put it in writing that they wont come after you for the deficiency balance. That is very important because they can garnish your wages and take any assets you have. Feel free to email me with any other questions about it, I am in the business and help people save their home from foreclosure and negotiate short sales and deed in lieus.Source(s): In the business..
- acermillLv 71 decade ago
This makes no sense whatsoever. If you are not delinquent on the first mortgage, there is no reason that you would receive notice of foreclosure. Perhaps you would like to provide more information ?