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Foreclosure/2nd lien on a forclosure

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Expert: Dennis Herman - 6/16/2009


Question
If a person forecloses on a home in Arizona that has the 1st and 2nd at the same bank does everything go away and your credit rating tanks?  Or does the 2nd become a unsecured debt that can ultimately force a person to declare bankruptcy because it never goes away?  What is the worst that can happen and what is normal?

Answer
This is really a question for an attorney.  You may want to run it past this past an attorney.  There used to be attorneys on this  site but I can not find them.

In most cases the property liens are forgiven before the title of the property is transferred fro the owner to the bank.  But the judge can order all of part of the mortgage to be paid.  This can vary from state t state.  This site will give you a bit of information.  http://www.foreclosurelaw.org/

In most cases the 1st and 2nd mortgage are forgiven.  I would consult an attorney to make sure everything is taken care of before giving up title on the property.

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Dennis Herman

Expertise

I can answer questions on Real Estate such as question on writing an Offer to Purchase. What can go wrong after an offer is written? What is Buyer Agency and what will it do for me? What is a foreclosure? What is the difference between a foreclosure, a bank owned property and a short sale? What is the best way to locate a property? What steps can be taken to avoid foreclosure? How do Real Estate Agents get paid? How can I quickly build equity in a home? How do I view homes? What types of homes will have the best prices? How do I choose an agent? What types of financing are available?

Experience

Residential and commercial real estate. New home purchases. Buyer Agency. First time home buyers. Foreclosures, bank owned properties, estate sales and short sales.

Organizations
Greater Milwaukee Realtors Association Wisconsin Realtors Association National Association of Realtors

Publications
http://activerain.com/bloghome

Education/Credentials
State of Wisconsin Licensed Real Estate Sales Agent Accredited Buyer Agency Training Relocation Training Certified Senior Citizen Representative Wisconsin Real Estate Continuing Education

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