Foreclosure: Second Mortgages, Home Equity Loans, Investments, and HELOCs

There's a lot of confusion when it comes to foreclosure and second mortgage, home equity loans, home equity lines of credit (HELOCs), judgment liens, and other junior mortgages. Some common questions: Can second mortgage lenders foreclose on your home if you stop paying?  What happens to second mortgages and HELOCs if your first mortgage lender forecloses? Can the second mortgage lender sue you in court to repay the loan?

Below you can find the answers to these, and other questions regarding foreclosure and second mortgages.

If a judgment lien is on your home, and that property is foreclosed, the judgment lien is wiped out.

If you fall behind on second mortgage payments, the lender may or may not foreclose, depending on the value of your home.

Learn how liens and second mortgages get paid off in foreclosure, and your liability for the underlying debt afterwards.

Learn the difference between a second home and investment property, and find out how it can affect the type of loan you can receive.

If your lender charges off your second mortgage, you still owe the debt and it can still come after you to collect on it.

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