Posted on: 07th Mar, 2009 06:54 am
What happens to the 2nd mortgage after a sheriff's sale and the bank bid the amount on the first mortgage? Can they sue for a deficiency judgement? Do they usually do this?
Though your property went through a sheriff's sale, you will still be liable to pay off the mortgage dues of the second lender. If you do not pay off the dues, the second lender will charge off your mortgage.
house went to sheriff sale with a second mortgage, am i still responsibe to pay for the second and what if i do not
Hi valerie,
If the foreclosure sale of the property does not help in paying off the second mortgage, then you will be liable for paying off the second mortgage out of your own pocket. If you don't do so, the second mortgage lender may charge off the loan and assign it to a collection agency.
If the foreclosure sale of the property does not help in paying off the second mortgage, then you will be liable for paying off the second mortgage out of your own pocket. If you don't do so, the second mortgage lender may charge off the loan and assign it to a collection agency.