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Updated about 7 years ago on . Most recent reply
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Question about 2nd Mortgage Foreclosure surplus
If the 2nd mortgage(junior lien) goes to foreclosure and there is a surplus of funds after being sold to the bidder, will the Senior lien receive any of the surplus? This is assuming it's the only other lien on the property. There's not much info in regards to surplus funds when the 2nd mortgage forecloses. This would be for California.
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Winner at a second mortgage foreclosure gets the property subject to the first. The first is not affected. Any surplus (in your example) goes to the borrower.