Has your 2nd mortgage come back from the dead in 2018?

February 8, 2018 | Brian Ruhl

Many homeowners in Southern California that thought their 2nd mortgage they stopped paying on years ago was dead and gone. Alert: The 2nds Are Coming! No, it’s not a bad movie. Savvy and aggressive investment groups are buying up the non-performing mortgage notes from the original servicers or have been waiting in the wings waiting to pounce at the right time. Due to increased home prices in many markets these investors see an opportunity to either foreclose on the homeowner and take the equity that these 2nd mortgages now have or they are contacting homeowners to work out a payoff or get the mortgages to start performing again.

For example, if a homeowner originally owed $300,000 on a 1st mortgage and $100,000 on a 2nd mortgage back in 2011… and the value of the home at the time was $250,000, there would be no equity position in the 2nd mortgage and if you stopped paying on it at the time or filed bankruptcy to discharge it there was no reason for that 2nd mortgage to pursue the homeowner because there was no equity in the home.  Today, that same homeowner may still have the 1st mortgage for $300,000 and the value may be $375,000. That smells like an opportunity for those 2nd mortgage note holders and many are starting to take advantage due to the newfound equity that they see as THEIRS… NOT YOURS.

If you are in Southern California and want advice on your options if this is happening to you, contact me on my cell at 858-212-0395 and I can go over details with you.


Brian Ruhl
The Ruhl Team (Top 1% on Trulia and Zillow 5 Stars)
REALTOR – Over 1000 Successful Short Sales
Cell: 619.228.6200
Lic# 01493664 / eXp Realty

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