Should the proceeds of a foreclosure sale be used to satisfy the second mortgage?

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Should the proceeds of a foreclosure sale be used to satisfy the second mortgage?

Asked on February 26, 2012 under Real Estate Law, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

In a foreclosure sale, depending upon who is foreclosing (first or the second mortgage), the proceeds are typically used to pay off per statute the senior liens, the costs of the sale and then all junior liens if any money is then left over.

If the junior lien (second) forecloses, then the junior has to keep the senior lien current or the senior will then foreclose on the second.


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