Will They Foreclose?
Dave says don't worry, the bank's not going to foreclose when you're only two months behind on their mortgage.
QUESTION: Julie has a business loan that’s attached to the house. She and her husband can’t afford the house and can’t sell it because of the business loan. The balance is $94,000 and they owe over $350,000 on their first and second mortgages. The house is worth a little bit less than that. The bank said they’ll foreclose when it falls two months behind. Is that true?
ANSWER: That foreclosure line is a lie. If they foreclose on the third mortgage, they have to pay off the first and second to get the house free and clear. They will pay off the first and second and they’ll own the house for what they just paid. They won’t get anything toward their loan. They may sue you because you have a $90,000 unsecured business loan, but they won’t foreclose. Climb the ladder at this bank until you have a manager or someone with a brain, and work it out with them.