First Loan gets reassigned/sold years later. Is it still senior?

[Derek Sziga]

Hello everyone,

In the case of a sherrif sale. If the primary mortgage ends up being "reassinged" years later to a different mortgage company, does that loan still remain its seniority?

Situation - Loan for 220k in 2004 resold in 2015. Second loan in 2008 for 75k. Home goes into foreclosure / sheriff sale on reassigned 220k loan. the 220k loan takes seniority and wipes out the 75k loan correct?

[Ron S.]

Originally posted by @Derek Sziga:

Hello everyone,

In the case of a sherrif sale. If the primary mortgage ends up being "reassinged" years later to a different mortgage company, does that loan still remain its seniority?

Situation - Loan for 220k in 2004 resold in 2015. Second loan in 2008 for 75k. Home goes into foreclosure / sheriff sale on reassigned 220k loan. the 220k loan takes seniority and wipes out the 75k loan correct?

All things being equal? Yes. Correct. Sounds like a first mortgage lien in 04' and a HELOC junior lien in 08'. Junior gets wiped out by the first lien foreclosure sale. No way the first would subordinate without a gun to their head. "Reassigned" is not a common term used. I suspect you just mean the loan was sold to another entity or that servicing was transferred to a different entity.