First position and second position to foreclosure

[Horacio Gutierrez]

Hello,

Say there is a first note and second note on a home if they buyer gets foreclosure by the first position what happens to second position loan does he get paid by the loaner in the first position if there is equity or can second position become borrower and keep paying the first position or ny law the home needs to be sold for first and second position to get paid?

[Wayne Brooks]

In a foreclosure by the first, the second gets wiped out....if the suction bid was for more than the first was owed then the second would get the surplus funds.