Legal Question in Real Estate Law in Michigan
foreclosure and holding 2nd mortage
I hold the second mortage on a house that is being foreclosed on by the holder of the first mortage. What does this mean for me? I know nothing about this kind of stuff!
I sold a house, which needed alot of repair, on land contract to a young couple. They ran out of money while redoing the house. They got a mortage to continue working on the houseand to pay me half of what they owed me, leaving me holding a second mortage on the balance. They have defaulted and are in foreclosure. Where does that leave me?
Thank you for any helpfull information you can give me.
1 Answer from Attorneys
Re: foreclosure and holding 2nd mortage
This means that you take subject to the rights of the first mortgage. If the first mortgage company is successful in foreclosure, they will take the proceeds and pay off their lien leaving the remainder if any for you as the second mortgage holder. In order to take priority over them, you would have to pay them off.
You need to get them out of the house - get your house back from them, and then catch up on the mortgage. Start eviction proceedings ASAP.
If you would like my assistance in the matter, or would life further information, please contact me via my website at www.lawrefs.com.
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