what happen to Second mortgage after forclosing

Question

I am planning to buy Condo from the bank who had forclosed on it as first mortgage after the redemption period ends, but the property also has second mortgage on it am I responsible to pay off the second mortgage if I buy it from the bank(first mortgage) or the second mortgage is clear it after the bank(first mortgage) take over the ownership of the property. any advice appreciated

Peter Walther · Answer

I agree with Chris's answer assuming the 2nd mtg holder was properly served and hopefully filed an answer in the foreclosure.  Without proper service the 2nd mtg continues as a lien on the property and you're buying subject to it.  If that happened, it is possible to later extinguish the lien though that might take another suit.  If you're buying from the bank, I further assume you're getting a title policy insuring your interest.  If you are, the commitment that is issued to you should disclose whether the title insurer believes the 2nd was extinguished so I suggest you read and understand it before closing.  I hope this helps.

Chris Seveney · Answer

@Kevin James

If the bank was in first position and foreclosed the 2nd position would have been wiped out

Make sure they have paid the hoa fees since the foreclosure

Also make sure to do a traditional closing with title company and title insurance