Legal Question in Real Estate Law in Maryland

Re: Second Mortgage

You will be paid if the property sells for more than the amount of the first mortgage plus costs of sale. Otherwise, your lien will be wiped out, although in the normal case you will still be able to sue for the amount due.

Re: Second Mortgage

Usually in these situations the only way you will avoid losing out is if you bid on the property at the foreclosure sale. Unless the property is particularly desirable, typically only the first lienholder "bids" an amount equal to its lien and expenses and takes over the property, which wipes out your lien. So you would have to bid that much to satisfy the first lienholder and hope there's enough equity in the property above that to allow you to sell it and recover your debt. But if the property's been trashed, or just doesn't have the value, you'd be throwing good money after bad.