What happens in a foreclosure second mortgage.?

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A house is closed, and carried in the newspaper. I am looking for a title and now is in foreclosure the second mortgage. Does anyone now what happened, the first loan. If I won money, I Haus.Ich felt that only the first lender has the right to sell the house to save their money and leave the second lender to take care of it / take it personally to the borrower. I am the reason for the foreclosure of the second mortgage in the paper wird.Vielen confused Thanks for any help.

  1. Reply
    January 31, 2011 at 5:37 am

    Your correct in the second half of your question. Second mortgage can’t proceed a first mortgage. As long as they are current on their first mortgage then the forclosure proceeding for the entire property is slim. the first mortgage will always be paid first and the second follows. Chances are that you will hold a lien against the home for the amount you purchased, but that doesn’t mean you will receive the money if a full forclosure takes place. The fist mortgage holder will collect as much as they can and in some cases they can sell the property at a very low amount, which leaves you high and dry to collect anything.

  2. Reply
    Roxann Colter
    January 31, 2011 at 5:46 am

    To foreclose, the second lien holder has to pay the first off in full. Slim chance there will be anything left for the second to get after that occurs.

  3. Reply
    January 31, 2011 at 6:44 am

    Any lienholder can try to force a sale of the property through foreclosure, but usually only the first mortgage will get paid off through the proceeds of the sale. It just makes more sense for the second mortgage to try to work with the debtors to find a solution, since they wouldn’t get anything from a sheriff sale.

    If you placed the bid and won, the proceeds of the sale would be distributed like any other foreclosure. The property taxes would be paid first, since the bureaucrats need to get their hands on the money as quickly as possible. Then the first mortgage would be paid off with as much of the proceeds as possible.

    Then any other liens, including the second mortgage, would be paid in order of when their lien was filed. If there is enough money to pay all of the second mortgage, then they get all of the rest of the money until they are paid off. Then anything remaining goes to other liens or to the homeowners are their gain from the sale. If there is not enough to pay off the second mortgage (or even all of the first mortgage), then the second will not be paid off at all or in full. It will be up to the mortgage company to sue afterwards for a deficiency judgment (an unlikely occurrence).

    So, just because it is a second mortgage suing for foreclosure, it won’t really change how the liens are paid off in the end. You’ll still end up with a title that has had the liens on it discharged through the county foreclosure auction.

    Hope that helps.

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