Re: How to foreclose 2nd mortgage. - Posted by B.L. Renfrow
Posted by B.L. Renfrow on May 17, 2006 at 08:21:59:
Your choices would appear to be either (1) find out what the problem is and if anything can be done to fix things. Does the buyer not have the income to make the payments? Does he simply not care and believe you won’t do anything about it? Could the terms of the loan be modified to enable him to begin paying? (2) Sell your defaulted note to someone else and let them handle the problem. The trouble with this approach is that your note at present is worth very little. You’d probably be lucky to get $1000 for it. (3) Initiate foreclosure proceedings.
New York is a judicial foreclosure state, and yes, there are certain procedures which must be followed. I’d agree with the other posters that it’s not a do it yourself project if you’ve never done one before. You need a lawyer.
They don’t call these throw away seconds for nothing. As you’re discovering, by the time you pay an attorney to handle the foreclosure, wait out several months with no payments and likely having to cover the first and pay for repairs and eviction, you’re looking at loosing significantly more money.
What you need to figure out is whether you’re better off recovering what you can, i.e. the property, or just cutting your losses and getting out now.
Whatever you do, you should do it soon. You don’t want this hanging over you indefinitely. Go talk to the buyer, talk to a lawyer and make your decision.