Legal Question in Real Estate Law in Maryland

Re: What happens to 1st mortgage after 2nd bought from foreclosure.

If you were not properly notified of the foreclosure on the second trust, you should immediately take action to object to ratification of the sale in court. You should have received a certified letter notifying you of the sale well in advance of it. Once a foreclosure sale takes place and the sale is approved by the court, you no longer have control of the property. The foreclosure sale purchaser has control, and is subject to the first mortgage. Your only option at this point is to try and buy the property back from the foreclosure sale purchaser, and then to restructure with the first mortgage holder. There will be significant foreclosure costs associated with the foreclosure that the purchaser would require you to bear.