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No. They are liens on the property. Typically what happens is the property will be foreclosed and sold. The liens, including the mortgage, will be paid off in the order of being placed. Once all liens are paid off, if there is any money left over, there might be some money for the owner.
A Different PerspectiveLien priority is important in a foreclosure procedure. That's why a lender who loans a considerable amount of money on a home secured by a mortgage seeks to be in first place and will often require other lenders to subordinate their liens.Lien priority depends on the time of recording except for property tax liens which take priority over every other type of lien, even a first mortgage. The foreclosing lender takes the property subject to any lien recorded prior to the mortgage being foreclosed. The foreclosing lender must pay off those senior liens. Any lien recorded after the mortgage is a junior creditor and that lien gets wiped out as of record and will not affect the title to the real estate for any future owner. One exception is IRS liens which do not get wiped out and must be paid to clear the title to the property.
Junior creditors can go after the debtor personally but they will have no interest in the real estate.
You can read a good example at the link provided below.
What else can I help you with?
Are you still liable for mortgage after foreclosure?
Only if the foreclosure is a court-ordered foreclosure.AnswerThe mortgage is extinguished by a foreclosure proceeding and sale but you may be liable for any deficiency and costs relating to the sale.
What are the procedures at a real estate auction to determine what liens are paid?
Answer: Liens that were recorded prior to the mortgage must be paid. Taxes and municipal liens must be paid. Liens that were recorded subsequent to the foreclosed mortgage are wiped out by the foreclosure. AND you should have the title checked at least one more owner back to determine what liens are outstanding.
If your home mortgage is foreclosed and you have a second mortgage do you have to pay the second?
Yes. Any junior liens on the property are extinguished, but the debts themselves still remain (it may be hard to enforce them, though).
Can a lien lead to foreclosure?
Check this post, it talks about liens and foreclosure. http://www.foreclosedpropertiesdata.com/blog/foreclosure-help/how-liens-can-lead-to-foreclosure/
Are liens paid with foreclosure?
That depends on what the outstanding balance of your loan is, the value of your home, and how much the bank will settle for. There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
After chapter 7 bankruptcy second mortgage was reaffirmed but not first mortgage if there is a foreclosure who gets their money?
In a foreclosure, creditors are paid in the order of their liens. A first motgage is paid first. Anything left over goes to the second, and if there is still anything left of proceeds, it goes to the third or to the debtor. Taxes and other municipal liens are paid before anything else.
Do payments on mortgage need to be up to date to get a reverse mortgage?
No they don't. There is no income or credit qualifications other than federal delinquencies. (student loans, federal tax liens etc) We have even stopped foreclosure with a reverse mortgage.
If you are in foreclosure for your first mortgage are you still responsible for the second mortgage if there is a second mortgage on the property?
If your first mortgage is in the process of foreclosure that foreclosure will extinguish the second mortgage as to the real estate. The foreclosure of the first mortgage terminates all subsequent interests in the real estate. After the foreclosure the real estate can be sold free and clear of any subsequent mortgages or liens. However, the debtor remains responsible for the second mortgage debt.Any remaining proceeds from the foreclosure sale after the first mortgage is satisfied are paid toward the second mortgage. In some states the second mortgagee can seek a "deficiency judgment" in court against the debtor. However, even when possible it's not often done due to the costs and the slim probability the debtor will have the ability to pay.You should check your state laws.
Do Government foreclosure have liens?
yes
Can a mortgage borrower apply for court foreclosure?
No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.No. A borrower cannot "apply" for foreclosure. A bank commences a foreclosure when the borrower defaults on their mortgage payments.
If you purchased a home and the first loan was not enough for the sale you were forced to get a 2nd and the 1st was foreclosed on Is the second considered and unsecured loan or still a lien?
The answer may be different in different states but, in general, foreclosure of a lien discharges all junior liens (i.e., the second mortgage) to the extent the proceeds from the foreclosure sale are insufficient to cover the junior liens. There is still a debt owed, but the property, having been sold in foreclosure, is free of all liens junior to the one that was foreclosed.
In a preforeclosure does the end buyer have to pay off the unpaid balance of the mortgage?
The buyer at a foreclosure sale pays to the bank the amount they bid at the sale. The foreclosure process nullifies the outstanding (or foreclosed) mortgage as it affects the property. However, a buyer at a foreclosure sale should have the title examined by a professional in order to disclose any other liens and encumbrances that affected the property prior to the recording of the mortgage that was foreclosed. A person who plans to bid at a foreclosure sale should always work closely with an attorney.
