My nightmare Short Sale listing......
I am working on a short sale listing that is going to be foreclosed by the Second lender. In this particular case the seller was making payment only on the first loan and was not making payment on the second. While Seller was current on the first loan the second lender was filling the notice of default to start the foreclosure process ... afterward Seller stopped making payment on the first Deed of trust and defaulted on the first loan too. Now the trustee sale of this property is schedule for tomorrow by the second lender.
What is going to happen with the first Deed of trust?
I thought (first Deed of Trust) or second lien loans are second in priority so, the first or senior debt is the first in priority in the repayment schedule after property taxes, but in this case the second is trying to foreclosed on the property to make sure they get paid.
What could it happen if the second deed of trust sells the property?
What takes priority the first or the second loan?
What is the reality scenario that will take place to for mediating this complicated problem?
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