Legal Question in Real Estate Law in California

Home Foreclosure

Once your home forecloses, what happens with the lienholder of the 2nd mortgage (or HELOC)? Are they able to come after you legally since the lienholder on the 1st gets the house?


Asked on 3/14/07, 3:57 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Home Foreclosure

If there are any excess proceeds from the foreclosure sale, the funds will go to lien holders with the next highest priority. If there are not enough funds left over to pay the lienholder of a second mortgage, the lienholder has the option of filing suit for a money judgment. If the the lienholder obtains a money judgment, they can go after other assets of the debtor.

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Answered on 3/14/07, 4:24 pm
Robert Mccoy Law Office Of Robert McCoy

Re: Home Foreclosure

If the second was procured as part of an initial purchase of your residence, then it goes away. If it was procured later, then, generally, the lender can sue you.

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Answered on 3/14/07, 5:57 pm


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