Bought 2nd lien at auction.

[Elizjua Jua]

first time we bought a property at auction. Shortly after we faced the fact that we bought the 2nd mortgage lien. However we paid at the auction enough to cover both 1st and second lien.  Would the second mortgage paid the first mortgage in this case?

[Ron S.]

1st lien holder more than likely would not be eligible for any of the surplus funds. They have  first lien position and the sale was subject to the first lien. In my opinion, the borrower would get the proceeds if there are no lien holders behind the foreclosing entity and then, soon, the 1st lienholder will start foreclosure if they aren't paid off.