A Noobie Question...
What happens when a 2nd mortgage goes into foreclosure and the 1st mortgage is not in default? Does the foreclosing lender have to buy the 1st mortgage at the Sale in order to protect their interest?
Thanks!
No.. But they do assume the first if its not sold at the sale. If the second is sold then who ever won the bid assumes the first.
To put it simply, whoever wins the bid at the courthouse foreclosure of the 2nd gets the deed to the property.... subject to the first and any other senior encumbrance.
[addsig]
Good simple answer!! Thanks King!