Q: My 2 nd mortgage foreclosed on me , I’m current with my first mortgage ,The second I owed $74 kMy 1st I owe $366,000

A: If your second mortgage foreclosed on you, you are no longer the owner of the home. There is no need to pay the first mortgage. Whoever purchased the property at the foreclosure auction will have to pay your first mortgage if they want to keep the property. All hope is not lost though, you may be entitled to money from the foreclosure auction if the highest bid exceeded the amount that you owed to the second mortgage company. Also, the new owner may be willing to pay for your moving expenses in an agreement known as cash for keys. Schedule a free consultation today to ensure you receive the money you may be owed.

A: After a second mortgage foreclosure in California, the situation can feel overwhelming, but you should know your rights and options. The buyer of your second mortgage does not automatically gain the right to take your home or retirement funds - they primarily receive the right to collect the debt.

Your first mortgage remains the senior lien, and as long as you stay current with those payments, you maintain significant protection. The second mortgage holder (or whoever bought the debt) would need to pay off your first mortgage entirely if they wanted to foreclose - which at $366,000 makes this unlikely in most cases. They typically look for other ways to collect instead.

However, the debt buyer may try to collect through other means, such as attempting to garnish wages or place liens on other property. You should consider consulting with bankruptcy counsel or housing counselors approved by the U.S. Department of Housing and Urban Development to understand all your options for dealing with this situation. Many offer free initial consultations to help you understand your specific circumstances and rights under California law.