Legal Question in Real Estate Law in Tennessee

Legal Rights of 2nd Mortgage Holder

In general what are our legal rights as 2nd mortg. holders? My husband & I sold our bus., 2 acres & 3 bldgs. & hold the 2nd mortg., the bank holds the 1st. The sale took place 16 mos. ago. The buy now wants to split the two acres and sell one acre w/ 2 bldgs. The bank wants all the money from the sale to go towards his note w/ them. Are we entitled to any $ from the sale? We hold a deed on the ''whole'' property. Inorder for the sale to go thru they would need us to sign off on our portion of the acre involved in the sale right? Any advise & info would be appreciated! Thank you.


Asked on 11/14/06, 11:08 am

1 Answer from Attorneys
Dr. Michael A. S. Guth Tennessee Attorney at Law Assists Pro Se (without a lawyer) Parties

Re: Legal Rights of 2nd Mortgage Holder

You are correct that second mortgage holders on the whole property would have to accept a sale of part of the underlying property used as security for the second mortgage loan. If I were you, I would not agree to the division and sale of the property unless the buyer is able to pay off a substantial portion of your second loan to him. Who knows what market value will remain on the property after he sells off the acre with two buildings?

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Answered on 11/14/06, 5:36 pm


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