Foreclosure by 2nd lien holder

Ok how about this...The 2nd forecloses and buys the property in, subject to the first. The 2nd proceeds with unlawful detainer/eviction. Because of this the debtors stop paying the first lien holder. Can the 1st lien holder demand the 2nd to buy their note or should the 1st proceed with foreclosure?

hi franko,

if the second mortgage lender buys the property, then the first mortgage lender will ask the second lender to take over the first mortgage and pay them off.

thanks

If the 2nd continues to fail to respond to the first lien holder request for payoff then the first still has every legal right to foreclose, thus stripping the 2nd's foreclosure, correct?

Welcome franko,

The first lender will always have the first priority. The first lender can take legal actions against the second if his dues are not settled.

i bought my home 7 years ago with arm to adjust in 2 years. i was able to refinance in 2007. the man who put siding on my house foreclosed 10/2010. he had been pain in full but i had to go to court. i won my case even though my mortgage company would not step in to help. this person took me to court again and i won again. i looked at my records and found my property is in his name. i have missed alot work because i couldnt afford a lawyer so i am now for the first time behind and facing forclosure. plus he bought the property for 5000.00! i am under the assumption that he now owes a payoff to the lender?

Hi KATHERINE,

Property ownership won't matter in this case. If the mortgage is in your name, then you will be liable for the pay off. If the mortgage docs are in the name of that person, then he will be liable for paying off the balance amount.