What Happens To 1st Mtg When 2nd Forecloses?

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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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