Legal Question in Real Estate Law in Virginia

2nd Loan Foreclosed what are my rights

My second lien foreclosed and the attorney is now telling me that I have to move and that I shouldn't worry about continuing to pay my 1st mortgage, instead I should save all of my money and prepare to find another place to live. But when I called my mortgage company they said that they haven't been notified by the attorney of this foreclosure. Does the foreclosure by the second have the right to evict me?

My first mortgage is in good standing and when I called to inform them of the judges decision, they are telling me that because they are in first lien position that I don't have leave and they don't want my house back. I am so confused and haven't yet paid my mortgage for this month because I don't know what to do. I've worked in mortgage companies before and I've always been told that a subordinate loan could not trump a first lienholder's position, so what right does this attorney have to put me out. I feel like I have no choice and am practically giving my house away because of my lack of knowledge. Can someone please tell me what my rights are. Also is it too late to file for bankruptcy at this point so that so that I can keep my house?


Asked on 10/14/08, 5:47 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: 2nd Loan Foreclosed what are my rights

The second forecloses subject to the first, and they have to pay it off, but once the hammer falls at the foreclosure sale - no matter which mortgage - you no longer own the property. As for filing bankruptcy, it is too late to stop the sale once the hammer falls; however, if the 2nd lender bought it at foreclosure, it may be possible to work with them (voluntarily on their part) to allow reinstatement of the loan in bankruptcy.

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Answered on 10/14/08, 7:43 am


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