Foreclosure And The Second
Can someone give insight on when or why the second steps in at the foreclosure sale if they are not the party foreclosing?
Can someone give insight on when or why the second steps in at the foreclosure sale if they are not the party foreclosing?
The first takes precedence on the loan that is why they are called the first. If the first forecloses they can, and I belive do offer the second the option of paying off the first to take the property. If they do not, which usually does not happen, based on the equity, and how much the second is. The first gets the house, and the second loses every dime.
The only way for the second to get thier money is to pay the first. If they foreclose it is the same thing, that is why the second will usually work with you the most.
Depending upon the foreclosure laws and customs in their state, second (or junior) mortgagees may ask the Court to have their payoff included in the judgment amount... or otherwise join in the foreclosure lawsuit. They might attend the foreclosure sale to bid up to an amount they would accept, or to make sure that the sale was held in accordance with applicable laws.
Thanks all for the responses