What Happens To 1st Mtg When 2nd Forecloses?

Hi! Could someone please shed some light on what happens to the first mortgage when the second mortgage is the one foreclosing (the first is current)? Any possibility of negotiating a discount with the first mortgage lender even though payments are current?
Thanks in advance for any advice!

Comments(1)

  • TheShortSalePro31st March, 2005

    The first mortgage remains in place. Depending upon the amount of perceived equity, the first mortgagee may or may not have any incentive to consider a discount.

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