Sheriff Sale of 1st Mortgage followed by sale of 2nd Mortgage

[Ajay Kejriwal]

Hey Guys - I purchased a first mortgage that was foreclosed at a auction in NJ a couple weeks ago.   Unfortunately, i did not do proper title search in advance, and it turns out that property had a second mortgage.  This second mortgage was foreclosed and auctioned the following week.  I am not struggling to figure out how this will work.  Will my first mortgage foreclosure take priority and all subsequent liens (including the second mortgage) get wiped out?  Or will the purchaser of the second mortgage have lien on the property?

Any thoughts will be helpful.

Thanks!!!

[Jessica Zolotorofe]

That can't happen. Send me an email or call me in my office tomorrow and I'll explain better, but even if a second mortgage was foreclosed, any sale would be subject to the first mortgage, and the first mortgage would have to be paid in full before the second was satisfied. SO, either you owned it and that sale is void because it was wiped out, or you didn't own it yet and the first lien was valid. Either way, something doesn't sound right here. First and foremost, record your deed immediately. Second, retain a lawyer and get this worked out. I assume you spent some money at the auction, so worst worst case, you have to be paid back, but the property should be yours.