Are there costs incurred by a second mortgagee when the first mortgagee forecloses?

UPDATED: Nov 5, 2010

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Nov 5, 2010Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Are there costs incurred by a second mortgagee when the first mortgagee forecloses?

I going through a Chapter 7 bankruptcy so I will be relieved of my 1, 2, and 3rd mortgages. My 2nd and 3rd are held by the same bank. If first bank forecloses what cost are incurred by bank holding 2nd and 3rd mortgages? There may be $40K left over after the foreclosure so I’m trying to come up with a number that I can offer the bank who has the 2nd and 3rd mortgages to remove the lien so I can eliminate this debt and stay in my house and just pay the first mortgage.

Asked on November 5, 2010 under Bankruptcy Law, New Jersey


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

There are always costs associated with foreclosures and all legal proceedings. I am a little confused by your question.  If you are including your mortgages in the foreclosure you will lose the house and the rights to the house. Are you reaffirming the mortgages? But that would mean that you were intending to pay them.  Are you trying to negotiate the deficiency judgement(s)?  But that may not apply here.  I think that you should sit down with a bankruptcy attorney or a debt counselor to try and figure out what it is you want to do here and really if it is at all possible. It may work out in a different way than you think.  Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption