Lien position and foreclosure

By
Real Estate Agent with 24/7 Realty Inc.

Liens have positions on the title to property, 1st, 2nd, 3rd etc.  A 2nd mortgage lien holder can foreclose on a property but their foreclosure action is subject to the lien of the 1st lienholder.  So if someone where to buy the home at the auction or from the lender as an REO they would still have to pay off the 1st mortgage lienholder.

Conversely if a 2nd lienholder where to foreclose on a property with 3 or more mortgage liens then every lien, mortgage or not, with the exception of taxes recorded of record on the property after the date of 2nd mortgage would be exstinguished by the foreclosure action of the second mortgage holder.

So when a 1st postion mortgage holder forecloses they extinguish all liens that are subsquent to them with the exception of taxes. 

Looking to buy a foreclosure in New York, contact me at www.247REOREALTY.com

 

 

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Anonymous #8
Anonymous
MJ

Does Bankruptcy (chapter 7) extinguishes Real estate Mortgage Liens on the property title?

April 11, 2008 03:08 AM
Rainer
8,145
Susan Vanderburgh
Utopia Management
Does anyone here have info about the junior liens filing first in CA?
April 11, 2008 03:51 AM
Anonymous #10
Anonymous
Anonymous

I'm in the same position.  We are not and never have been a single day beind on our home mortgage, but we are months behind on our business bank loans that have 2nd and 3rd leins against the house.  Now those jr. loans are screaming foreclosure.  I don't how that is possible if we owe the 2nd loans like 100k and our mortgage is for 200k.  It doesn't seem like it is to their advantage to foreclose on our home if they have to pay the 1st lein holder.

January 10, 2009 10:04 AM
Rainmaker
326,687
Andrew Monaghan
CRS, GRI, EPro Associate Broker
Your Phoenix Home Source

There is ccases in AZ where if anybody above the 1st forecloses the HOA must be paid.

January 10, 2009 11:10 AM
Anonymous #12
Anonymous
Ny lien

Hi there

 

Hey site has explained all help nicely.

 

Thanks

Donald

 

 

 

 

April 19, 2011 06:12 AM
Anonymous
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Rainer
77,576

Jeffrey Dolfinger

NRBA Member
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