We were recently asked this question, which is a rather critical one:

If my second mortgage is past due, even if my first loan is current, could I possibly lose my house?

The answer is absolutely, positively YES! Anyone having a lien on your property can foreclose if you don’t make your payments and the lienholder goes through the process. That process may vary according to the type of lien, but the most common mortgage type of lien in Western Washington is a Deed of Trust, which requires an initial notice of default and a series of updates after that. The process from notice of default to the foreclosure sale on the steps of the county courthouse is about 6 months.

If you ignore the notices, the sheriff will eventually show up to evict you after your house has been sold. It won’t matter if you have equity in it, because it will probably sell for what is owed – or possibly less. The bottom line is, don’t play ostrich and ignore even the first notice. Get on the phone to the lienholder, and if you can’t get caught up with them, call a real estate agent to see if you can sell it and get some equity out.

Ignore the notices, and you will end up with nothing.

For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!