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Foreclosure Forum |
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You Might ReinstateIn Reply to: 2nd Deed of Trust posted by Kim Boatright on October 01, 2003 at 0:03 AM You should find out what creditor holds the senior deed of trust (mortgage), determine what the arrearage is, the outstanding balance, and how close to the foreclosure date they'll accept payment. As a 2nd lienholder, your in-law has the right to reinstate the senior, and persue her own foreclosure, to demand payment on the 2nd. However, she will (effectively, you will) endure the costs of reinstating the arrears, and continuing to make mortgage payments while foreclosing. There will be trustee's fees for conducting the sale, too. And of course, the overall hassle and frustration of trying to do this. There's no guarantee the house will sell in foreclosure. You may end up taking title to it, continuing to make payments, and spending money to fix it up and sell it on your own. There are some other possibilities. Maybe the owners are strapped enough to just deed the house to you for nothing, (and you would make the payments, and try to sell it, without having to persue a foreclosure.) Or you might find an investor willing to buy that 2nd deed of trust (at discount) from your in-law. Unfortunately, whatever action you persue, she's probably not going to collect all that is owed on that 2nd... unless a retail buyer for that property can soon be found. The easiest answer is probably for her to simply accept less than is owed. It'll allow the home owner to advertise it for less money, and sell it quicker.
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