We have an outstanding 2nd mortgage on a property that was foreclosed on.

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We have an outstanding 2nd mortgage on a property that was foreclosed on.

We have an outstanding 2nd mortgage on a property that was foreclosed on.
We understand we may still be liable for it. That is our first question. Also, is
there a statute of limitations in this instance? The last payment / activity on the
account is from 10/2013. I did reach out to the lender about a year ago. I got no
real information from them. I got a lot of refi / restructure paperwork but that
was all. Thanks Mary

Asked on July 20, 2018 under Real Estate Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, you are still liable for money owed on the mortage: the foreclosure does not cut off the 2nd lender's right to be repaid their money. They could sue you for the money. 
However, if they fail to act in the next year and a few months, it may be too late for them to take legal action to enforce the mortgage (i.e. sue for it). The "statute of limitations," or time period within which someone must sue for a "breach of contract" (violation of contractual obligations; a loan or mortgage is a contract) is six years for a written agreement in your state. The statutory time period begins running from when the agreement was first breached or violated--in this case, from when you first failed to pay. You indicate that your last payment was "almost 5 years ago"--that means you would have breached the loan agreement almost 5 years ago. Once more than 6 years have passed since your breach, they will not be able to sue you for the money.


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