I just tried to do a short sale but my 2nd mortgage lender wouldn’t accept the offer. It is going to foreclose. It is vacant and was vandalized with flooding some time in the past few days and is terribly damaged.
If the bank is taking it away, could I be held negligent for not mitigating the damages from the obvious water damage caused by the vandalism?
Could I be liable for damage to the neighbors property from the water seaping into their walls?
Do you know the foreclosure process? What might expect after the foreclosure if the second lender has to take a huge loss?
Homeowners who are in danger of losing their homes through judicial foreclosure should not forget about the equity that always exists in a mortgaged property represented by the sum of the mortgage payments that the mortgagor no longer makes while the property is in foreclosure (and for several months before and after). This is so even if the property is worth less than the amount owed to the bank. The total amount of these monthly payments to be saved can be considerable, depending on (i …