Question:

What happens to the second mortgage if you have a first mortgage foreclosure?

Answer:

If you are foreclosing on your first mortgage, the second mortgage is still due.

The first mortgage foreclosure makes you clear debt with your first lender. But you will still owe on your second mortgage. If the foreclosure proceeds were large enough, the second lender should be paid off from first mortgage foreclosure intake. If not, you still owe principal and interest to your second lender.

Even if you are willing to take on another mortgage loan and you have even found a lender, you may not be able to buy another house since the second lender has probably pursued you and you have a judgment in your public records. Thus, even if your first mortgage foreclosure is over, you cannot become in title of another property before you settle with the second lender, as you can't get insurance. In any case, contact a real estate lawyer to consult you, as situation will differ by state and case.

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Common misspellings: mortage and morgage