1st,2nd and 3rd Mortgage
November 11th, 2007 by Questions
I am bankrupt and have an apartment with negative equity. There are 3 mortgages; the first has about 83,000 owing, the second 40,000 and the third about 30,000. A relative is a guarantor on the first mortgage only. There are no guarantors for the second and third. The lenders are 2 different institutions. A similar property just sold for about 150000. I am not keeping the asset. My question is; what happens to the guarantor of the first mortgage, since a sale of the asset would easily pay for the first mortgage at least. What do the 2nd and 3rd mortgage lenders do? Do they pressure the first lender to sell?