Legal Question in Real Estate Law in Virginia
Trying to purchase a home from the owner before trustee sale. Have spoken to the owner and have found out there is a second note on the home. We feel the owner is trying to withhold information in order to get a full payment of his loans before the sale.
If we were to purchase the home at the trustee sale and there is a second mortgage on the home, are we liable for the second mortgage or will it be wiped during the foreclosure auction? I have read that someone can be sued for the second mortgage on the home (but am unclear as to who), would that be the original homeowner who borrowed the money or would that be us the purchasers? By the way, the second mortgage on the home is double the amount of the first mortgage, but the first mortgage is the one the home is being foreclosed on for.
In Virginia. Thanks for any help.
1 Answer from Attorneys
The original homeowner who borrowed the funds which resulted in the so-called junior lien or second mortgage would remain responsible for it unless there were sufficient funds realized from the foreclosure action to pay off this obligation(which in this case does not appear likely).
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