Alameda Foreclosure Help: Can You Be Foreclosed On From A Junior Lien Or Second Mortgage?

Alameda-Foreclosure-Help-Can-You-Be-Foreclosed-on-from-a-Junior-Lien-or-Second-Mortgage

In the third quarter of 2021, foreclosures reached a new high. Lenders foreclosed on approximately 45,517 properties during this quarter, primarily occurring when the COVID-19 bailout programs ended.

If you have more than one loan on your house, you might wonder if your lender can foreclose on your house if you fail to pay your junior lien.

If you’re having trouble paying your second mortgage, you should look for foreclosure help from a qualified lawyer to determine if you can lose your Alameda home by falling behind on your junior liens.

Here are several things to know about this if you are struggling to pay your loans.

Understand Liens on Homes

A lien on a house grants rights to the property to the creditor. Your first mortgage lender holds the senior lien on your home, but you can have more than one loan on a house at a time.

So, what is a junior lien? A junior lien typically refers to a second mortgage on a house. If you borrow more money against your home through a second mortgage, the lender of this mortgage is a lienholder of the property.

Any creditor that places a lien on the property has rights to the home and can pursue foreclosure if the borrower falls behind on the payments.

The Basics of a Foreclosure

When you fall behind on your house payments, your lender might send you a foreclosure notice to let you know that they will pursue foreclosure if you don’t catch up on the payments.

Your primary mortgage company in Alameda might do this if you miss one or two payments, but your junior lienholders can also do so if you miss any payments.

According to foreclosure laws, lenders must work through the steps of the foreclosure process in order to take possession of your home. This process takes time, and it doesn’t happen overnight.

As the borrower and homeowner, you have rights. For example, you can stop the foreclosure by paying the past-due balance to your lender.

The Effects of Falling Behind on a Junior Lien

The lender that holds your second mortgage can file a property foreclosure if you miss a payment or two. If this occurs, you’ll need to hire a foreclosure attorney right away to save your home from foreclosure.

It’s important to know that a junior lienholder can file foreclosure proceedings on a home even if the homeowner is current on their primary mortgage.

You have options, though, to stop a foreclosure from occurring, but you’ll need to seek legal help to find the best route to take.

Where to Turn for Help in Alameda

If you fall behind on your junior lien or home mortgage in Alameda, you’re probably worried that you will lose your home. If you want to learn your legal options, contact a law firm that specializes in foreclosure law.

Estavillo Law Group handles foreclosures, and we can help you. Call us today to learn more about your options.