Short Sale Of Property With 2nd Mortgage
Question: What happens to the 2nd mortgage holder after a short sale of a property?
We currently own a home in Lakeside, Michigan, that has a first and second mortgage. The first holder has agreed to a "short sale" What happens to the second holder? Can they put a lien on personal property in Michigan? We just don't know what to do! Thanks for your feedback.
Answer: The second mortgage holder can hold out for full payoff. Is the home value below the first and second mortgage total? Also, a second mortgage holder does have the personal promise of the owners for payment of the note that is secured by the mortgage. So the second mortgage holder could get a judgment for personal liability against the owners.
Attorney: Mark Miller
Ask An Attorney
Do you have legal questions?
Use our form to send your question to us and our lawyers will post the answers on our website.