Skip to content
Two investors reviewing resources on a laptop

Get industry-leading resources — for free

Unlock resources for every investing strategy and stage with a free account.

By continuing, you agree to BiggerPockets LLC's Terms of Use and Privacy Policy

×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Followed Discussions Followed Categories Followed People Followed Locations
Rehabbing & House Flipping
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

1,763
Posts
1,299
Votes
Eric M.
  • Flipper/Rehabber
  • Louisville, KY
1,299
Votes |
1,763
Posts

Would appreciate attorney opinion...mortgage modifications/liens

Eric M.
  • Flipper/Rehabber
  • Louisville, KY
Posted

Long story short. This is for the purposes of a foreclosure auction. 200K original first mortgage. in 2013, modification recorded indicating that principal was being reduced from 170 to 130K and a HUD partial claim was being added for 52K.

No additional recording of lien or anything by HUD but my understanding is just this clause in the modification creates a new lien of 52K on the house. So now basically a 130K lien and a 52K lien.

Now jump to 2019. First mortgage lender forecloses and goes to auction. Is the HUD partial lien considered a second mortgage (wiped out by FC) or is it somehow still part of the first mortgage and must be paid by auction buyer?

Thanks

Loading replies...