2nd Mortgage Foreclosure Question

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2nd mortgage foreclosure question





I was wondering during a foreclosure auction on the 2nd mortgage. If your the successful bidder at auction on the 2nd mortgage. I know you are now responsible for the 1st mortgage but does the excess money from the sale go to the first mortgage or do you need to come up with all of the money for the first mortgage in additon to the excess of the sale.





example property has a 1st mortgage of 200k 2nd mortgage of 50k and the property has a fair market value of 350k. The 2nd mortgage is foreclosing and at auction it sells for 225k now the extra 175k does that now get applied to the 1st mortgage assuming there are no prior liens.

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