Legal Question in Real Estate Law in Oregon

Foreclosure With Second Mortgage

We have an 80%/20% interest only

loan that is 30 year fixed on both.

We have heard that if we foreclosed,

that the lender on the 20% loan

might come after us with that

balance in the form of an unsecured

note. Is this true in all cases?


Asked on 7/02/09, 5:09 pm

1 Answer from Attorneys
Susan Burns Law Office of Susan Ford Burns

Re: Foreclosure With Second Mortgage

It is not uncommon for the lender holding the 2nd mortgage to go after the borrowers after the 1st mortgage forecloses. Is it true in ALL cases? Hard to know. There are probably cases where they do not, but I would expect them to in most cases.

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Answered on 7/07/09, 2:32 pm


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