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foreclosed property with 2nd lien

Posted on: 13th Sep, 2010 10:13 am
I had a foreclosure for one property in January. This same property also had an equity line but with a different bank. We were told that the 2nd lien would be obsolved with the foreclosure but we're still paying on it. The equity line is now considered an 'unsecured debt'. How can the first mortgage holder forclose when there is a second lien on the property?
hi bingosmom!

welcome to forums!

though there is a second mortgage on the property, it will be considered as subordinate to the first loan. the mortgage lender has the rights to foreclose the property if he does not receive his dues. it will be your responsibility to pay off the second mortgage.

feel free to ask if you've further queries.

sussane
Posted on: 14th Sep, 2010 12:46 am
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