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All mortgages are eliminated in foreclosure.

The position of the the mortgage - which is virtually always determined by who recorded their lien first - determines the order of who gets paid the money received by the successful bidder at the foreclosure auction.

The amount of the debt (which includes the unpaid principal, back payments, interest, late fee's, costs of collection/foreclosing, etc) of the one in 1st position gets the money up to the amount owed. If there is any additional amount received by the sale, it is dispersed down the list until all are paid, and any remaining is then given to the one who lost the property. The foreclosure records would show who received the funds...although this is not the type of thing most lenders wouldn't reveal and account for...when demanding any remaining amounts from you.

If not enough money was generated to pay off a lender in full, the lender can (and generally do) seek other methods (garnishment, etc) to recover whatever their loss is...the debt is not forgiven...only the original collateral on it is no longer available.

**I Disagree.** Not in Missouri. A 2nd mortgage foreclosure sale event does not directly affect the 1st which remains a lien against the real estate. (Larry)

2009-10-13 23:25:09
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Q: What happens to the second mortgage if the first mortgage is in foreclosure and how can you find out if the second mortgage received any money from the sale of the house?
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Can a mortgage company sue for the entire amount of a second mortgage after foreclosure even though they received money to cover the first and some of the second after the sale of the property?

First, it is unclear how you know the mortgage company received money toward the second mortgage from the foreclosure of the first mortgage. The lender can sue for the second mortgage. You should consult with an attorney who can seek documentation from the lender to support the amount they are suing you for.First, it is unclear how you know the mortgage company received money toward the second mortgage from the foreclosure of the first mortgage. The lender can sue for the second mortgage. You should consult with an attorney who can seek documentation from the lender to support the amount they are suing you for.First, it is unclear how you know the mortgage company received money toward the second mortgage from the foreclosure of the first mortgage. The lender can sue for the second mortgage. You should consult with an attorney who can seek documentation from the lender to support the amount they are suing you for.First, it is unclear how you know the mortgage company received money toward the second mortgage from the foreclosure of the first mortgage. The lender can sue for the second mortgage. You should consult with an attorney who can seek documentation from the lender to support the amount they are suing you for.


A friendly foreclosure enables a mortgagor to prevent the mortgagee from taking the property by statutory means This can be accomplished by use of an?

What happens to a second mortgage if there is a friendly foreclosure of the first mortgage on property?


What happens to the first mortgage if the second mortgage is in foreclosure?

nothing...it remains a lien on the property and a debt which is assumed by the successful bidder at the auction of the 2nd mortgage


What happens to second mortgage in foreclosure?

After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court.After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court.After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court.After the foreclosure of the first mortgage the second mortgage is wiped out as an encumbrance against the property but remains an unpaid debt against the mortgagor. The creditor can sue in civil court.


What happens if someone pays their first mortgage but not their second?

The mortgage companies will end up fighting over the proceeds when your house is sold after foreclosure.


Can a second mortgage put your home in foreclosure?

Yes, any unpaid mortgage can put your home in jeopardy of foreclosure.


When a second mortgage is in foreclosure does the first mortgage show as a foreclosure?

No, they are two separate loans. If the second mortgage is foreclosed the lender takes possession of the property subject to the first mortgage. The borrower no longer owns the property.


WHAT is a stand alone second mortgage and what happens to it when a home goes to foreclosure?

A stand alone second mortgage is another loan that is taken out against your home when the first loan is still in order. If your home goes to foreclosure, you will still owe this money as well.


Is tax on continuing a second mortgage deductible after filing for a first foreclosure?

Even if you have had a foreclosure, tax on a second mortgage or home equity loan is still deductible.


What can a lender do when the second mortgage is not paid in full due to foreclosure?

Assuming that the FIRST mortgage was foreclosed, a foreclosure wipes out any mortgages that were recorded after the foreclosed 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.


What are the dangers of a second mortgage foreclosure?

The biggest problem with second mortgage foreclosures is that you can lose your home even if you are still current on your first mortgage. The second mortgage, if defaulted on supersedes you first mortgage.


What happens if I let my second balloon mortgage go into default Is my home or 1st mortgage going to suffer?

Yes, it could. Any lien holder can initiate the foreclosure process - so if your 2nd mortgage goes into default, the mortgage company could choose to start foreclosure proceedings based on the default.


What happens to second mortgage if first mortgage is foreclosed?

If the first mortgage is foreclosed the second mortgage lien gets wiped off the property by the foreclosure so the property can be sold free and clear of the second mortgage. However, the mortgagor still owes the debt to the lender and the lender can pursue collection of the amount due by a civil lawsuit.


After foreclosure on a first mortgage is the next buyer of the property liable for the second mortgage?

In almost every state, the answer is "NO".


What risk is inherent in second mortgage loans?

the main risk is that the first mortgage will not be paid. if the first mortgage is not paid, goes into default, and is foreclosed, the second mortgage will be determined in the foreclosure sale.


Can you go into foreclosure if you default on your second mortgage?

Yes. Your second mortgage is secured by your home, so if you default on payments, the lender has the right to foreclose.


Can a first mortgage lender omitted from foreclosure and let the second foreclosure?

Yes, but whomever buys at the second foreclosure will own the property subject to the first lienholder's debt. The first lienholder can still foreclose and wipe out the second.


What happens to the second mortgage if the first mortgage is sold?

Nothing happens to it. It still remains in second place.


What to do when you hold a second mortgage and the people have not paid in 4 months?

Absolutely start the foreclosure process. If the first mortage is also in default, then you run the risk that they start foreclosure before you. If that happens there is a good possibility that your mortgage will be wiped out. The only way to avoid this, in most states, is to purchase the house at foreclosure. For most private mortgage holders this is not a realistic alternative. Typically foreclosure can take several months. By delaying further you insure that your losses will be compounded. Keep in mind that you can always stop the foreclosure process.


What happens to the second mortgage if the first mortgage is paid off?

you then only have to pay the second


If your first original mortgage is current can a second mortgage foreclose?

Yes. Any lien holder can initiate foreclosure proceedings when their lien is in default.


Can I do a Bankruptcy and foreclosure with a second mortgage at the same time?

YOU don't evcer do a foreclosure on what you own. the bank does. Bankrutpcy overrides foreclosure and in fact will essentially delay it while the property is sold in the BK process.


What happens to your second mortgage in chapter 13?

The second martgage is attached to real property and must be paid. Chapter 13 does not erase collatoralized debt. So, both martgages must be paid to avoid foreclosure.


Can a second mortgage put a lien on a home that is not foreclosed but I owned as a primary home however since foreclosure the first mortgage was paid its full amount and the second mortgage nothing?

A second mortgage already has a lien on the home. If you don't pay the second mortgage they will foreclose and take the home. By paying off the first mortgage you just make it easier for the bank to get their money back out of the property when they sell it.