Will the 2nd mortgage and all junior liens be wiped out?
Liens take priority according to the date of their recording. The foreclosure of the HOA lien will wipe out any liens recorded after it was recorded in the public records in the county in which the property is located. All of the liens recorded prior to the HOA lien will survive.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
General Practice Lawyer
In an HOA foreclosure, any pre-existing leins survive the foreclosure. The only person removed from the picture is the owner who is foreclosed on. The new owner takes title to the property subject to the existing mortgages and/or leins which are each assigned a priority based on their filing dates.
It is possible to stay a foreclosure proceeding by filing bankruptcy. To explore a homeowner's legal rights and remedies, it is important to consult with an attorney experienced in this area of the law.
Nina T. Marano, Esq.
Bogin, Munns & Munns, P.A.
NO LEGAL ADVICE: This response is not intended as legal advice nor should you consider it as such. It is intended only as general information with respect to a question that you have raised. You should not act upon this information without retaining professional legal counsel. Please keep in mind that merely contacting Bogin, Munns & Munns, P.A. cannot represent you until the firm knows there would not be a conflict of interest, and the firm determines that it is otherwise able to accept the engagement. Any information or documents sent prior to your executing an engagement letter and submission of a retainer deposit cannot be treated as protected by an attorney client-privilege and may be determined by a court to not constitute protected information of any nature.
I concur with the assessments of my fellow attorneys. The failure to pay the HOA and subsequent foreclosure of that lien does not, without more, extinguish the first mortgage. I suggest you consult with an experienced foreclosure defense attorney who should be able to give you a complete analysis of your case.
Michael P. Fuino, Esq.
Matthew D. Weidner, P.A.
This answer is for informational purposes only and should not be construed, in any way, as the acceptance of representation and the creation of an attorney-client relationship. No attorney-client relationship shall exist unless and until a retainer agreement has been signed by Matthew D. Weidner, P..A. and countersigned by the prospective client.