What happens to a second mortgage during foreclosure?

Answer by  salsafoodie (3146)

Depending on the the state and your lien holder, you may have to pay for the second mortgage on your home.

Answer by  patti (29325)

The disposition of the second mortgage depends on the contract. A defaulted mortgage does not get paid; it is a loss to the lender.

Answer by  tamarawilhite (17883)

If there are not enough funds after the sale of the house to cover the first and second mortgage, you will be liable for the difference.

Answer by  Valjean (15)

After a lienholder successfully forecloses in court, a foreclosure auction is held, and all lienholders are paid in order of their priority. If the house sells for enough to fully pay the first mortgage holder, the second mortgage holder gets what's left. If not, he gets nothing.

Answer by  Shankalot (484)

The person(s) on the second mortgage remain responsible for the debt even if there is a foreclosure of a property.