Legal Question in Real Estate Law in Washington

Re: after forclosue of home can a 2nd bank try and their 2nd postion paid of by

It seems to me that something is seriously wrong with that second mortgage. Upon close of the auction, in order to properly pass title to the home to the new buyer, all outstanding liens and mortgages must be paid off first. This includes the second mortgage.

Let me put it another way: the sale never should have been completed if the second mortgage was not paid off. Normally, the buyer would not get a new deed of trust (mortgage) to the property until all the previous owner's debts and liens are first paid off.

This means one of two things has happened here. First, it is possible that the second mortgage holder's records are incomplete and they show no payoff, when in fact they were paid off at the time of the sale. Second, somehow, some way, title was transferred without paying off the second mortgage. If this was done, then someone made a huge error along the way. No matter what happened, it's not your friend's fault. He needs to call the second mortgage holder and explain the situation. If something happens where they try to go after his assets, then I highly recommend you seek counsel to defend such an action.

I suspect there is more to this story than you were able to write in your query. If you need further assistance, please do not hesitate to call our office for a free telephone consultation to see what we can do for your friend.