Second Mortgage on your homeA Second Mortgage on Your Home
Mortgage lenders can take possession of a real estate again and resell it if the debtor does not repay the mortgage in accordance with the conditions of the mortgage contract. Mortgage loans are of different kinds. If you are in arrears, your option may vary depending on whether you have an interest only mortgage, a redemption mortgage or a foundation mortgage.
Mortgages always have precedence. If you are in arrears with your payment, this could mean that you end up losing your home. House owners often take out a second mortgage or secure mortgage to fund home improvement or to access a large amount of loans. As your original mortgage, this mortgage is backed up on your home, so if you don't keep pace with the repayments, the lender your home can be repossess.
Every credit backed up on your home should be handled as a matter of urgency. They may have other debt that is not backed up on your home. Ultimately, you will have to pay back this debt, but you should first concentrate on processing your senior debt. When you have cash remaining after making a payment to your senior creditor, you can use it to make your non-priority one.
In the ideal case, mortgage defaults should be settled as quickly as possible, but your mortgage provider should work with you to find a way to repay the amount you owed without taking your home. Financial and debit advisors can ensure that you can purchase and meet your proposed redemption amount.
Dropping back on your redemption schedule can make your relation with your creditor more complicated. Keep in mind that your home will only be repossessed if your creditor has a legitimate ground for repossession and the proper process is followed.