Actually it's not that clean. Where major issues occur is when there are multiple loans on the property. When the first lien decides to foreclosure it is up to the second and sometimes third lenders whether or not they want to foreclose also. Example: Billy Bob bought a house on an 80/20 loan in 2000. In the following years Billy Bob took two home equity loans out one to pay his credit cards for 25K and one for 75K to build a pool and remodel his home. When the 80% loan forecloses the other lenders decide if they want to join in. If they do not and the first does not even break even with their costs and liens the other lenders are then free to sell that debt to collection agencies. This debt will follow you where ever you go. They can garnish your wages and harass you until that debt is settled. Billy Bob is still responsible for the 100k in cash out loans plus he is liable for his 20% second. This does not happen in every case this is worst case scenario. But it is all avoidable. I help people negotiate with their banks. In a lot of cases we can save peoples home and in cases like the one I just described we can negotiate this down to nothing or at least something manageable. If you or someone you know is in trouble with their mortgage please let me help.
Orville McCallister
Consultant, Diamond Consulting Group
951-970-8025
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