Go Back To Search Results Question Do you have to pay the 2nd mortgage if the property forclosed? My credit report shows the account as paid and closed, but the lender is calling because they want their money. I received a 1099A on the first loan already but not on the second loan, what can I do? By claudia Posted on 02/28/08 Total Answers 4 Answers- I believe you do..yes Answer by : carpediemmaster On Date 2008-02-28 12:30:06 if the saleof the property produced enough money to pay, than no, but if not you still need to pay it Answer by : paula_5150 On Date 2008-02-28 12:32:32 It depends on the jurisdiction, and on the means of foreclosure. Under California law, the foreclosure of a senior lien wipes out all junior liens, but it doesn't wipe out the debts: the junior lienor's claim becomes an unsecured claim, but it doesn't disappear. What DOES disappear is the possibility of a deficiency judgment if a lienor forecloses and the sale of the property brings less than the amount of the debt; thus, a lienor in this case will bid the amount of the debt at the foreclosure sale. Answer by : rhsaunders On Date 2008-02-28 12:39:33 When you foreclose on a house, you do not get relieved of all debt. Let's say you have two mortgages: First for $100,000 Second for $20,000 the bank with the first mortgage forecloses on the house and it is sold by the bank for $105,000 Your first loan is paid off the $100,000 The second loan is paid $5000 The second loan is still your responsibility ($15,000 + other costs as tie goes on). Sorry, but you should have learned about that when you foreclosed. Answer by : Davyd S On Date 2008-02-28 12:43:15   Go Back To Search Results