What happens to the second mortgage after a foreclosure

By
Real Estate Agent with DeCoursey Real Estate Group

I have a past client that had a 1st and a second mortgage on a home that we tried to get a short sale approved.  By the time we had an offer, the bank took so long that the house was lost to foreclosure.

The home is now listed and has a pending offer for $75,000 less than what our offer was for before it was foreclosed.  This makes me so angry....I really don't think banks give a damm about anything or anyone, they just like to talk a good story so they can get bailed out at a later date.

Anyhow, now my past client is getting collection calls for the second mortgage demanding that she settle or start paying back the second mortgage on a property that she has already lost.  By the way, both the first and the second loans were with the same bank, so they both had an opportunity to accept the original offer.

Have you had something similar?  Why are they calling her on the second?  This is all very confusing for the former or current homeowner.

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