Legal Question in Real Estate Law in Georgia
Seconde mortgage
two years ago we took out a second mortgage on our primary home. we lost the house to foreclosure.the house was auction off.the house was as security deed onthe second mortgage. now the holder of the second mortgage wants us to pay them the money for the sevcond mortgage.they call the house and they constantly send us letters in the mail threating legal action.i thought trhis matter should hace been settled at the auction closing.please help me with any advice possible.you advivce will be greatly appericated.
thank you very much
yours truly
2 Answers from Attorneys
Re: Seconde mortgage
Apparently, the second wasn't taken care of in the foreclosure. Even though the foreclosure wiped out the security interest of the second, the holder of the second still has a claim against you on the promissory note that you signed in connection with the second.
Re: Seconde mortgage
Whether the second mortgage was satisfied by the auction sale depends on the sale price of the house. If the sale price was large enough to pay off the first and second mortgage completely, then there should be nothing to collect. More likely, however, is that the total sales price was insufficient to cover both mortgages and so the holder of the second mortgage is attempting to collect the deficiency.
If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.
The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.
Glenn M. Lyon, Esq
MacGregor Lyon, LLC
Promenade II
1230 Peachtree Street NE
Suite 1900
Atlanta Georgia 30309
Phone 404.942.3545
Fax 404.795.0993
www.macgregorlyon.com
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