Legal Question in Real Estate Law in California
foreclosure
if there is no money left to pay off the second mortgage after a foreclosure, am I responsible for repaying the second mortgage.
An attorney for the second mortgage contacted me and demanded that I repay them now or else they will be taking me to court. What should I do?
2 Answers from Attorneys
Re: foreclosure
If you borrowed the money, you owe money. When the security interest of the second mortgage was wiped out by the foreclosure, they became an unsecured credtior and can sue you for the money owed.
If you don't work out a repayment plan, they can sue you for the balance owed. You might consider contact a local bankruptcy attorney for further assistance or a litigation attorney to help you work out a repayment plan.
Re: foreclosure
Unless the second loan was "purchase money" (i.e., it was created at the time you initially acquired the property), then the second lien lender can sue you as a "sold out junior lienholder."
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