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paultrimble · Joined: 10 Feb 2010 Posts: 1 1.43 Dollars($)

second mortgage holder forecloses, takes possession but does not pay anything to first mortgage holder. first mortgage holder forecloses on second, takes possession and sells residential property and keeps the "change".

Q1: when 1st mortgage holder forecloses, what happens to rights of the second?

Q2: what responsibility/fault lies with 2nd mortgage holder for not paying off the first...do they legally lose anything?

Q3: if no legal action taken by 2nd mortgage holder in 37 months since they lost out to 1st and 43 months since the initial foreclosure, what position are they in?

Q4: if no deficiency judgements exist in either case where do the demand rights fall?

Q5: property located in florida and home owner now resides in louisiana...would any suit follow florida laws or louisiana?

Q6: what happens if the 2nd mortgage holder sells the note to a third party and does not ever notify the home owner?

jameshogg · Posted: Wed Feb 10, 2010 8:20 pm Post subject:

Hi paultrimble,

The second lender still has the rights to collect the dues from you though your first lender has foreclosed upon your property. The second lender should have contacted you after the first lender foreclosed the property. I would suggest you to contact an attorney and take his opinion as to what rights the second lender has in this regard.

If no deficiency judgments exists, then you won't have to pay anything to your lenders. You can simply leave the property. As the property is located in Florida the lender will take actions as per the Florida laws. By third party, I guess, you want to mean a collections agency. If your second lender has sold off your debts to a collection agency, then it will contact you and collect the dues from you.

Thanks

Guest

in this case the second lender foreclosed initially, did not settle with the first lender in any way then lost when the first lender foreclosed on the second and have now sold the debt to a third party. the first lender sold the residence and have been silent.

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position of 2nd mortgage holder in Florida