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Mortgage Question?

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CreditDrama85
Established Contributor

Mortgage Question?

I have always wondered......if a property has 2 leins, and the smaller lein is in default but the larger loan not, could the 2nd loan foreclose? how does that work?
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Anonymous
Not applicable

Re: Mortgage Question?

Absolutely.  It is likely that the 2nd lien would file first to ensure some repayment.  If the first mortgage files first then the 2nd lien holder is more vulnerble and will probably not get anything.  It is in the best interest of the 2nd lien holder to file first.
Hope this answers your question.
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