Question regarding foreclosures.
If someone has a first and a second mortgage, and the first is foreclosing, what happens with the second? Who is resonsible?
e.g 1st 80K (15K in arrears + 2K for attorney)
2nd 25K ($3K in arrears no attorneys not collecting anything yet)
House is in fantastic shape, has Approximately 40K in equity before the above...
Thanks.
Clint
The second would have to wait until the first lien is satisfied. Essentially the second position has to wait it out, thats why they have more interest. But thats also why they are easier to negotiate down on the payoff.
Good Luck,
Kyle