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James J. Quail & Associates, P.C. James J. Quail & Associates, P.C.
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Frequently Asked Questions

At James J. Quail & Associates, our legal team knows that real estate law can lead to a lot of questions and concerns. This is especially the case when someone is facing foreclosure or going through bankruptcy.

Our goal is to provide the answers people need to make the decisions that can lead them to brighter futures. Take some time to go over some of the questions we commonly get from clients below and consider reaching out to our experienced lawyer for additional assistance.

Answers to Common Questions from Our Clients

My house was foreclosed. Why do I still owe money on my second mortgage?

If there is more than one mortgage or a mortgage and equity loan, only the first typically gets paid when the bank in the first position forecloses. As a result, a second mortgage or equity loan lender usually chooses to sue the borrower directly for a money judgment.

I have been paying my mortgage. Where did this second mortgage that the bank is contacting me about come from?

Many people don't know or forget that there were one or more mortgages/loans recorded on the property At the time of purchase or refinance. Even if the first mortgage is being paid, there may be a second mortgage or equity loan on the property that is not resolved. Many holders of these second or later mortgages wait until there is equity in the property, at which time they can foreclose and have proceeds that will satisfy prior loans and that loan.

I was told my account was charged off, so why is there still a lien on my property?

Lenders often indicated that they charge off the loan, which means that they have stopped collecting it. The mortgage lien stays on the property until it is formally satisfied. Some banks sell the loans at a discount, and they may reach out to try and collect on the debt. Others went out of business and there is no claim by any entity to the rights to the mortgage loan.

I completed a loan modification on my home, why wasn't the second mortgage included?

Very rarely is a second mortgage included. It is unusual for the same bank to own both mortgages as they have different risks attached- even though all purchases using two loans always originate from the same lender - but then sold. Only during HAMP modifications were the second mortgages resolved by the loan modification. But nowadays, check your loan modification paperwork to confirm that it only included one loan.

How can I create equity in my property?

You can contact James J. Quail & Associates, PC and utilize our expertise in short sales and short payoffs that may allow equity overnight.

I filed for bankruptcy and received a discharge of my mortgage debt, how can I get the lien released?

The bankruptcy trustee would have had to remove the lien at the time that they remove the debt. They do not usually do so because that would deprive the lender, who is a vested creditor, of future collection on the property. An application can be made for a short payoff to resolve the lien

I would like to request copies of my original mortgage documents. How can I start this process?

As the start of any legal representation, James J. Quail & Associates, PC requests and reviews the entire mortgage file.

Do You Have Another Question? Contact Us Today!

If you have a question about real estate law that we didn’t address here, don’t hesitate to reach out to our capable attorney for assistance. With many years of experience handling complex real estate matters, including those involving foreclosure and mortgage debt, attorney James J. Quail has what it takes to provide the support you need.

You can learn more by taking advantage of a risk-free consultation. Contact us online to get started.

Contact Us Today For A Free Consultation

No matter what your case involves, our firm understands you have already been through a great deal—physically, emotionally, and financially. By taking a moment to contact our office, you can learn more about your legal rights and options.

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