Foreclosure opportunity with second mortgage

[Noah Masa]

Hi All,

been looking at a foreclosure property recently that would be in a great location. After going to recorders office, it seems that the first mortgage is the one being foreclosed on, but the owner also took out a second mortgage about 6 years later from a different entity.  If I were to bid at auction, would I be responsible for that second position mortgage? Is there any chance that second company can come after me? 

[Rob Jacobs]

Quote from @Noah Masa:

Hi All,

been looking at a foreclosure property recently that would be in a great location. After going to recorders office, it seems that the first mortgage is the one being foreclosed on, but the owner also took out a second mortgage about 6 years later from a different entity.  If I were to bid at auction, would I be responsible for that second position mortgage? Is there any chance that second company can come after me? 

 As a buyer at auction, you will usually receive a sheriff deed depending on how your state passes title to you. The current liens stay with the person who signed for the mortgage notes and  cannot pass on to you as the purchaser unless you agree to it in writing.

[Chad U.]

Quote from @Noah Masa:

Hi All,

been looking at a foreclosure property recently that would be in a great location. After going to recorders office, it seems that the first mortgage is the one being foreclosed on, but the owner also took out a second mortgage about 6 years later from a different entity.  If I were to bid at auction, would I be responsible for that second position mortgage? Is there any chance that second company can come after me? 

As long as the second position mortgage lender is notified of the foreclosure via standard service process means, then that lien will get wiped at the foreclosure auction. In other words, no you will not be responsible for it.

[Eliott Elias]

Both will be wiped out.