They can still file for collections or create a charge for the debt against your credit. However, they may not do anything at all. Either way with a good credit program you can still repair your credit.

Hope this helps.

Thanks for visiting the site.

The lender of the 2nd mortgage can pursue a deficiency judgment against you. But some states DO NOT allow that, so you will need to check your state laws.

Let us know if you have more questions.

Thanks,
Barbara

If a house is forclosed upon and sufficient equity does not exist to satisfy a second mortgage, What can the holder of the second mortgage do to the person who has defaulted?