[MICHELLE C]

company does a strict foreclosure tries to sell it but there is a2nd?

[Lauren Perreault]

I don't know about judicial foreclosures since we rarely have them here in California, but it is most likely similar to what happens here with non-judicial foreclosures minus the courthouse.The second (and third or fourth if they exist) mortgages are subordinate to the first. Those subordinate mortgage holders would have been notified of the 1st's intention to foreclose and given an opportunity to buy out the first by correcting the deficiency themselves, thus entitling them to end up with the title, but usually this does not happen.Once the home is sold at auction, if there are any funds left over from clearing up the 1st mortgage, the second will get paid as much as possible, then the 3rd, etc. If there is still any left over, the homeowner will get some, but this is rarely the case at auction because the banks start the auction at a price to sell quickly. The additional risk of not getting paid is the reason that interest rates on 2nd mortgages or Home Equity Lines of Credit are so much higher than interest rates on 1st mortgages -- to make up for the additional risk.

[thomas d]

The second loan gets what is left after the first loan is paid off. I dont know if this is a general question or if you are going through this. If you are in foreclosure and you need help I have a great loan modificatoin company that I used to save my home. If you would like there contact information just send me an email