Legal Question in Real Estate Law in North Carolina

Second Mortgage holder claims after 1st Mtg. holder forecloses
What can the 2nd Mortgage holder collect after 1st Mortgage holder foreclosed on property and sale proceeds were not enough to pay any thing towards the 2nd Mtg., leaving that debt unpaid. After the foreclosure we did not hear from the 2nd Mtg holder and assumed they wrote it off and has also been reflected on a credit report 2 years after foreclosure of said property as a charge off. Now after 6 years the 2nd Mtg. holder, which has since been bought out by Wells Fargo has collection agents calling and demanding payment of the unpaid balance. Are we still responsible for the unpaid balance or could you suggest the manner in which to handle the collection agencies calling; without feeling we are being intimidated into something that will cause us more financial strain?

Asked on 2/16/04, 5:54 pm

1 Answer from Attorneys

Jim Griffin The Law Office of James L. Griffin

0 users found helpful

0 attorneys agreed

Re: Second Mortgage holder claims after 1st Mtg. holder forecloses

The 2nd mortgagor likely lost out. They do not have a security interest in the property because it has been sold. They can still seek payment but there is nothing to secure that payment. I may have an alternative for you to obtain the legal advice you may need on this issue on an ongoing basis as well as legal advice for any other future legal issues that will arise throughout your failie's life. If you would like more information, you can e-mail me at:

[email protected]

Either way, I wish you good luck.

Answered on 2/17/04, 1:52 pm

Mark as helpful