Can the 2nd mortgagee release the lien on a house if the 1st mortgagee doesn’t give the 1st anything?
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Can the 2nd mortgagee release the lien on a house if the 1st mortgagee doesn’t give the 1st anything?
I’m buying the house from the owner; he has only 6 months to sell the house. If he can’t sell it after that the house goes into foreclosure. He has a second mortgage. Can the 2nd mortgagee release the lien without getting anything from the 1st mortgagee so that I can buy it?
Asked on May 15, 2012 under Real Estate Law, Michigan
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
It is always possible that the second lien holder on the home that you wish to buy release its recorded lien on it leaving only the first lien in recorded position without receiving anything of value, but why would the second place lien holder wish to do this?
If the property goes into foreclosure, the second will be forced to cure the first or be wiped out in a foreclosure. The home's owner will be forced to keep current on the first and second or risk being foreclosed out.
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