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Does a second mortgage interfere with a first foreclosure?

Posted on: 15th Jan, 2011 05:27 am
i had a first and second mortgage with one lender. i filed for bankruptcy and both loans were discharged. i was working out a loan mod with the lender, when they sold the first mortgage to another lender (they still hold the note to the second).
the new lender on the first has determined that they cannot work with me on the first.
if the first lender forecloses, what happens to the second? i presume the new lender bought the first at a discount.
Hi kabentllc,

You have mentioned that your bankruptcy was discharged. In such a situation, you're not personally liable for paying off the dues. So, even though the first lender forecloses the property, the second lender won't be able to come after you in order to recover the dues.
Posted on: 16th Jan, 2011 11:42 pm
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