What to do about a second mortgage holder on a foreclosed home?

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What to do about a second mortgage holder on a foreclosed home?

Our rental house was foreclosed. There was a 1st and 2nd loan (same lender) on the property. The lender sold the 2nd note to another entity which is now suing us for the full amount due on the 2nd loan. Can they do this?

Asked on November 10, 2012 under Real Estate Law, California

Answers:

eric redman / Redman Ludwig, P.C.

Answered 8 years ago | Contributor

the second got nothing from the foreclosure sale of the house .  so you owe it the whole amount.  it can garnish to collect.  work out a payment plan with the atty or file a bankruptcy.  I can help with either.


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