Posted by Matthe on December 03, 2008 at 14:22:33:
Ken
Traditionaly the 1st forecloses,they have to notify the other lien holders. the 2nd and other lien holders have the right to purchase the first lien or get the leftovers, or nothing after you are foreclosed on. Local taxes and including h2o bills take first position becaause they are considered feederal.
foreclosure procedures / Law - Posted by Matthew
Posted by Matthew on July 21, 2008 at 11:54:36:
I have a client who had a foreclosure 2 years ago in Alabama, the first was included but the second is still showing a balance and no-one seems to be able to point me in the direction to get the matter settled. I was of the mind that in a foreclosure all liens after the first are extinguished / satisfied in the foreclosure.
Can you help
Matthew
Re: foreclosure procedures / Law - Posted by Ken
Posted by Ken on December 03, 2008 at 14:05:49:
Similar question:
My house is in foreclosure with a sale date in March. The F/C is being brought by the 1st mortgager. I have a 2nd and another lien against the property.
Will the forced sale close out all other debts on the property? If the sale amount just satisfies the first, what happens to the second and the lien? Do they just lose out? Does the debt follow the house or the debtor? If I found someone to purchase the property and work out a deal with the first mortgager, am I wiping out other debt?
Frclsr of 1st eliminates 2d lien - Posted by John Merchant
Posted by John Merchant on July 22, 2008 at 18:42:54:
A foreclosure of the 1st lien deed of trust would have eliminated all inferior, subordinate liens, including any 2d lien DOT on that property.
But it would not have eliminated the debt on the note itself and the creditor/lender could go to court and get a judgment against his original debtor on his note.
So I’ll “point” you in the right direction by telling you the creditor who holds that 2d note owns all the rights now pertaining to his note and can settle with you if he so desires, for whatever you & he might agree on.
That creditor might be so stunned and shocked to hear that he might get something on his now lien-less 2d note, that he might just settle for pennies on the dollar so it’s worth a try.