Legal Question in Real Estate Law in New Jersey

Re: foreclosure

It is impossible to give you a reliable answer without reviewing the loan documents. Consult with a locl attorney.

Re: foreclosure

The foreclosure simply accomplished the transfer of ownership and the extinction of the foreclosing first mortgage lender's security interest in the property (i.e., they no longer have a mere security interest in the property � they have the property). In Georgia the foreclosing entity can go after a deficiency judgment - but they must take action in the 30 days following the foreclosure sale to confirm the details of the sale and the purported deficient amount. If they didn't act - they, the first mortgage lender, have all they are going to get, namely the title to the property and possession.

The second mortgage was severed from the property by the action of the first mortgage lender in foreclosing. So they are left with a loan contract which you signed at closing, which has been converted to an unsecured loan. They can take you to court to enforce the loan contract - and can obtain a judgment which will sit out there, dormant perhaps, until they can find an asset to levy upon, or an income stream to garnish.

The 2nd lender will have to come after you where you live (NJ). They will avail themselves of NJ law on collection of debt � thus you should contact a NJ licensed attorney for particular advice.