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Updated about 7 years ago,
Interest in arrears for the first position
I have a few questions regarding the foreclosure process.
When you purchase a 2nd position at the foreclosure auction, I understand that you still need to pay the first position off afterward. Do you need to pay the interest in arrears as well as the original loan amount or just the original loan amount?
A different scenario. Say you purchased the 2nd position privately from the first position lender, and the first position started the foreclosure process. The money received from the auction will need to cover the legal fees for the auction, the original loan. Will that money need to cover the interest in arrears for the first position loan as well or it will get cancelled out? I am trying to calculate if the 2nd position will receive anything or not.