Question

if there is a $100,000 1st mortgage on a residential property that

is current (not delinquent), and a $50,000 2nd mortgage that is seriously delinquent, should the 2nd mortgage lender foreclose if the net value of the property (after realtor commissions, property tax, insurance, upkeep) is $70,000?




yes


no

Answer & Explanation
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Solution: ---> No

Step-by-step explanation

The reason for this is that the net benefit is an added cost of $20,000.  As of right now, the lender faces a loss of $50,000 where going through foreclosure on the second mortgage will result in a loss of 70,000. As a result, one should not pursue the foreclosure on the second mortgage.