What happens to the mortgage if there is an execution of sale on the property by the court?
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What happens to the mortgage if there is an execution of sale on the property by the court?
Asked on October 20, 2011 under Real Estate Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Good question. To answer your question, what happens to the exisitng mortgage on a piece of property if there is an execution of sale by the court all depends upon who is initiating the sale. If the lender who owns the mortgage has initiated the sale which is in first position and the property goes to sale, the mortgage in first position is then extinguished either through the sale to a third person or an actual foreclosure where the lender ends up taking title to the property.
If a third person is initiating the sale subjec to a senior recorded mortgage, the person who buys the property at sale takes subject to the senior recorded mortgage and is obligated to make payments upon it.
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