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If my 1st and 2nd mortgage are with the same company when my home was forclosed on in GA, is my 2nd mortgage forgiven?

Mcdonough, GA |

I purchased rental property in GA and was given a second mortgage loan the same time as the first mortgage with the same company to purchase the home. My home was forclosed on a year and a half ago. And at that time, I had GMAC on my first and second loan. GMAC recently sold my second loan and they are now trying to collect the second mortgage.

Attorney Answers 2


  1. It will depend on the terms of your mortgage documents. A part of my practice is focused on foreclosure law, and also confirmation law. See Http://www.confirmationlaw.com .

    Depending upon the terms of your loan documents, and if the lender did not confirm the first foreclosure sale, then they may not be able to sue you on the second mortgage. But, the debt is not generally "forgiven", and the lender may still be able to foreclose on the second property.

    I suggest that you have a foreclosure attorney review your documents.

    - Jim Fletcher


  2. It is unclear whether the foreclosure was upon the authority of the second loan/lien or the first.
    In MO, a foreclosure by the first forecloses the rights of the second.

    Consult the GA lawyer who wrote on this forum--sounds like a good guy &atty.