Does the 2nd mortgage holder have any rights over the 1st mortgage holder?

kdhein1 · Joined: 11 Sep 2008 Posts: 2 2.02 Dollars($)

We hold a 2nd mortgage on a spec home we built and unfortunately we had to foreclose on the buyers. Not only didn't they pay us but they also got behind on the 1st mortgage. The 1st mortgage lender has filed a foreclosure too. We have fixed the house up, listed the house with a realtor and kept things looking nice. My question is: Does the mortgage company that holds the first have the right to make us pay for the previous owners accumulated interest, back taxes and realtor fees just to sell the house?

adonis · Posted: Thu Sep 11, 2008 10:41 pm Post subject:

Welcome kdhein,

the foreclosure that you filed will have less priority than what the first mortgage filed. Moreover, I haven't heard of 2 foreclosures on the same property. I find that you have done the repair work so that the house can be sold off at a suitable price. But you can't do it until and unless the first lender gets his share of loan balance.

vegas_storms · Joined: 12 Sep 2008 Posts: 50 1.24 Dollars($)

Yes the first will more than likely go after you for any unpaid balance owed to them as the first holds priority over the second.

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