I have a 1st mortgage with HFC ($257k) and a 2nd mortgage with American General (15k). The house has been appraised at $315k. If HFC forecloses, who pays American General? Am I responsible for any payments after a foreclosure?
2007-01-31 04:58:45 · 3 answers · asked by jckylie13 1 in Business & Finance ➔ Renting & Real Estate
In most states first mortgages and Tax liens are superior liens which means that the foreclosure auction will take care of those liens plus any additional liens that you may have.
Check your states laws to make sure that this is the case. Generally this information can be found on the County Clerk's or Recorder's website.
2007-01-31 05:47:32 · answer #1 · answered by Foreclosure Goddess 2 · 0⤊ 0⤋
Both banks foreclose on you and the sale should include pay offs for both the 1st and 2nd trust otherwise, the title cannot transfer to the new owner.....the priority of payment is the lender in the first position then 2nd then taxes etc....
2007-01-31 05:04:23 · answer #2 · answered by boston857 5 · 1⤊ 0⤋
In most cases, AG would actually pay off HFC, in order to protect their 2nd mortgage.
If one gets foreclosed on, hardly worthwhile to keep paying on the other.
2007-01-31 05:33:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋