Pay off second mortgage right away after foreclosure?

Asked over 2 years ago - Milwaukee, WI

I am going through the foreclosure process. My loan is through WHEDA and I also had taken out a small second mortgage through them to cover closing costs. I understand that once the house has been turned over to them, I will still be responsible for paying the second mortgage. It's a small amount - less than $3,000 but I can't pay it in one lump sum. I currently make monthly payments of less than $50. Will I be required to pay off the second mortgage immediately, or will I still be able to make regular payments?

Attorney answers (2)

  1. David R. Barnes

    Contributor Level 2

    1

    Lawyer agrees

    Answered . Generally mortgages contain provisions that if the property is sold or foreclosed upon, the outstanding loan obligations secured by the mortgage become immediately due and payable. It is important to review the terms of your mortgage to see if it contains such a provision.

  2. Steven Anderson Leahy

    Pro

    Contributor Level 17

    2

    Lawyers agree

    Answered . You are not in default on the second. You can continue to make your monthly payments according to the agreement, unless the agreement provides otherwise.

    I hope this helps.
    Respectfully,
    Steven A. Leahy
    www.chicagotaxteam.com

    Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-... more

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