Second lien holder on a property going to sheriff sale!!

[David Shertzer]

I'm new to BiggerPockets and need some advice! We sold a small commercial building with our old business about 18 months ago. I got a letter stating the property will be sold at a sheriff sale from the fist mortgage holder. Next month. They are currently up to date on payments to me. We are calling a lawyer today. Looking for some advice on what to do I'm still owed a good bit of money. Is it likely I will get anything? Any advice would be greatly appreciated. 

[Jay Hinrichs]

few things

1.  very common for borrowers for what ever reason to pay the smaller mortgage and not the bigger one  cash flow issue.

2. contact the first bring it current and start your own foreclosure.  most senior lenders will allow a junior to do this.. some wont though.

3. the current owner deeds to you in deed in Lu  you bring first current and sell it.  even if first does not like it .. they would have to start the process all over and normally a first is happy to help the junior.

4. no cooperation from anyone.. go to the sale and bid to protect your second.. any competitive bidding the overage will come to you .. and some times if you contact the trustee ahead of time and they know your the second they will let you credit bid your second.. and not have to actually have the cash.

this is generally how it works for seconds .. either way U need to be proactive to protect your position.