I’ve been looking at the same thing here and the answer I’ve gotten is that is it can go either way. IF the second was properly served and notified about the sheriff’s sale then it will probably be wiped clean. HOWEVER, I would definitely go to the courthouse and get a copy of the judges order and judgement and take it to a qualified attorney to have them look at it before I’d risk a $34k mistake. Another thing you could do is look at the case file and call the attorney representing the second and ask them what will happen if you buy it. Good Luck.
Posted by Carl Williams on July 16, 2004 at 10:43:43:
I am looking at bidding on a house at the Sherrif’s sale in Tulsa, OK. The
question I had is that I noticed that their is a second mortgage on the
house. The first is for $111,000 and the second is for $34,000. If I was
to buy the house through the Sheriff?s sale, would I get stuck paying the
second mortgage or will the second mortgage be erased when it is
bought at the sheriff’s sale? Thanks.
If the first if foreclosing it will wipe clean all the junior liens. Federal liens have some exceptions…IRS…etc.
What will most likely happen, if there is equity, the second will come to the sale and bid in to protect their position. Remember they can bid it up to their 34K without being out of pocket.
Seldom does the title company and the trustee miss a recorded second so I do not think you have much liability there.