What ,if any are my rights as the second lien holder on a mortgage that is about ready to go into foreclosure?
Question:
Answer:
better talk to a lawyer on this one, in order to ensure your best probable option
in general if the senior lien holder the 1st note forecloses on a property all liens Junior IE your lien will be wipe out in regard to have an interest in the property; it will not wipe out the liability of the people but you will not have a secure note
Usually in these circumstances the junior lien will purchase the senior lien in order to preserve your interest in the land, the other option will be to sue the owners if they have assets
If there is sufficient equity in the property, is to start your own foreclosure and bring the first mortgage current. You will need to maintain the payments to the first mortgage holder to preserve your position.
Another alternative would be to bid at the foreclosure sale but then you'd be subject to the costs of that foreclosure in order to make the first mortgage whole.
If there isn't sufficient equity to protect your alternative is to file a civil suit and obtain a judgment on your promissory note. Be aware, however, that should you do so bankruptcy filing will extinguish the judgment leaving only our lien against the property which the first mortgage foreclosure will extinguish.
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