If the foreclosure sale doesn't pay off the senior lienholder's debts, is the senior lien file judge

  • March 29 2014 - Philadelphia
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Answers (2)

zuser20140307114144065

Many times a Foreclosure will wipe away all previous liens.  However, if there was no title search or it was completed incorrectly there could be liens that are still attached to the property. 

If the Foreclosure sale does not clear the previous owners debt, the previous owner is still held responsible for the debt even though they no longer own the property.  

If what you are asking is that there are two mortgages, The second receives their allotted funds, but, the funds that remain do not pay off the debt.  Yes, the senior lienholder can file a judgement against the previous owner for payment in full of the note that was signed. 

Wishing you the Best! 
  • March 29 2014
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A foreclosure wipes out liens against the property the home is basically considered free and clear you typically obtain a special warranty deed and obtain an title insurance policy to cover you should an undiscovered lien spear after closing.
  • March 29 2014
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