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Updated about 11 years ago,
I own a second mortgage that isn't paying, what to do?
A few years ago I sold a house to a couple that asked me to take back a second, since they could only quailfy for a 80% loan. I did and now they have stopped paying me, but they are still paying the first wich is a local bank with 2 branches. I contacted a attorney to start foreclosure. Yesterday I get a call from the attorney's office telling me that the local bank said that they would call the first loan due if I foreclosed on my second and took the house back. I had heard before that a second or junior lien holder could legally a make the payments on a senior lien in order to protect their position. My attorney doesn't know if this is correct or not. So I need some advice above and beyond someone telling me go talk to an attorney.