Legal Question in Real Estate Law in Virginia
Second Lien on Foreclosed Property
If the lender of a senior loan auctions off a property at a trustee sale, will all other liens still apply to the property. Or will the loan amount of , say, the second lien no longer apply.
Asked on 6/08/09, 10:26 pm
1 Answer from Attorneys
Michael Hendrickson
Law Office Michael E. Hendrickson
Re: Second Lien on Foreclosed Property
If there's insufficient funds from the trustee's sale of the property to pay the other lesser priority liens, i.e., the so-called junior lien holders, the debts secured by these liens will still
be due and owing by the borrowers who orignially signed for them, but they(the liens) will no longer attach to and encumber the property that was sold by the trustee.
Answered on 6/09/09, 12:30 am
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