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If a non judicial foreclosure takes place, is the borrower still responsible for a second mortgage on that property?

Newton, IA |

We are going through a non judicial foreclosure and have a second mortgage on the property. Will we still be responsible for paying the second?

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Attorney answers 1

Posted

Typically yes. A foreclosure on the first mortgage does not satisfy the second, and the second lender can still go after the money owed under the contract. You might talk to a local bankruptcy and foreclosure attorney to find out what options you may have. This is a very common situation and there are solutions, but each state is different. Good luck.