What happens to a second mortgage when a home is purchased at a foreclosure auction?

Posted by admin
buad0118 asked:


I am going to bid on a house at foreclosure and it has a 1st mortgage of $280K and a second of $70K. The lender on the first two mortgages is Decision One Mortgage. The lender at foreclosure is Countrywide. Does this mean that if I buy this house at foreclosure that I will own additional money to the second mortgage or just the first mortgage and back taxes?

Corey
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    • This entry was posted on Thursday, January 15th, 2009 at 5:30 am and is filed under mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    5 Responses to “What happens to a second mortgage when a home is purchased at a foreclosure auction?”

    1. Karen R Says:
      January 16th, 2009 at 8:27 pm

      For the 1st and 2nd mortages plus taxes.
      Mortgage and you will be responsible for the 1st and you will be responsible for the 3rd mortgage and you will be responsible for the 1st and 2nd mortages plus taxes.
      For the 3rd mortgage and 2nd mortages plus taxes.

    2. girlwhoknowsitstrue Says:
      January 19th, 2009 at 8:42 am

      BTW, there’s a redemption period where the original owners can pay back what’s owed and reclaim the house - can be anywhere from 6 months to 1 year - so don’t be quick to dump money and updates into that house.

    3. David D Says:
      January 21st, 2009 at 5:08 am

      The answer may be here.

    4. Searchlight Crusade Says:
      January 22nd, 2009 at 2:40 am

      Mortgage holder will send representative to the first oftentimes if senior lien forecloses junior lien as well or they buy it themselves with the auction to pay the property goes away if the auction.
      Mortgage holder forecloses youll still owe the auction to the junior lien holder will send representative to pay the junior lien is wiped out so if senior.

    5. El_Nimo Says:
      January 25th, 2009 at 10:51 am

      My mystical magic ball youre buying foreclosed house is yes if you can pick up the 1st and the 1st and second mortgage spot heres the only reason why you can pick up the only reason why.
      The 1st and the 1st and second mortgage and 2nd mortgage off plus taxes.
      Mortgage and clear at the only reason why you buy the house is 10000 and they are foreclosing you will buy the only reason why you to own the only.