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Updated over 8 years ago,
Foreclosure question
If bank is primary lender on a mortgage and forecloses and property also has a second line of credit securing the property as second in line, do those secondary obligations attach to the buyer of the property at a foreclosure auction?
Example:
Bank A forecloses on mortgage for $100k
Bank B provided a 2nd mortgage in the form of a line of credit for $20k
Buyer purchases property from bank A foreclosure auction for $50k, are they also responsible for the $20k 2nd mortgage?
Thanks,
Mike