Tags: foreclosure, foreclosure process
Can the 2nd lien holder start foreclosure process?
August 13th, 2008 by Jarad S.
Question: If the primary residence has two mortgages and the first one is up to date, but the second is not, can the 2nd lien holder start forclosure process?
Answer: -Yes, any lien holder can initiate the foreclosure process to get paid what’s owed them. However, many junior lien holders wait longer before they initiate foreclosure because they are responsible to payoff any senior lien holders. So at the auction if no one bids, the 2nd has to payoff the 1st. This is why if you are bidding at the auction, it’s critical to know who is foreclosing because sometimes they start the bid a what’s owed the 2nd and you think you’re getting a steal. Come to find out you have to pay off the 1st as well.
