2^nd Mortgage Lenders have been foreclosing to preserve its interests on properties. 2^nd mortgages (sometimes called a junior mortgage) may foreclose and pay off the 1^st lender to avoid being wiped out by a foreclosure from the senior lienholder.

A second-mortgage holder can initiate foreclosure proceedings even if the first mortgage is not behind on payments.

Even though a second mortgage foreclosure will not extinguish the first mortgage lien, this does not prevent the second mortgage lender from exercising its right to foreclose. The second lender can foreclose at any time after the borrower has defaulted on the second mortgage loan. The second mortgage lender does not need to wait for the first mortgage lender to foreclose.

When a second mortgage lender forecloses on the second mortgage loan, this foreclosure process will extinguish all interests in the foreclosure property that are junior to, or later in time than, the second mortgage loan. Therefore, the first mortgage loan will still be attached to the property after foreclosure, but a third or fourth mortgage loan or other lien that attaches after execution of the second mortgage will be extinguished.

The foreclosure process varies from state to state, but generally takes from two to 18 months depending on the terms of your loan and your state of residence. However, normally if mortgage payments are not received within 150 days, the bank can proceed with the foreclosure process.

Try to work out some sort of a payment or settlement arrangement with your lender for the second mortgage. Some 2^nd mortgage lenders will settle for 10%-30% of the loan balance.