Mortgages & Security Interests Flashcards
1
Q
Right of a Junior Lien Holder Against a Senior Lien Holder Before a Foreclosure Sale
A
Jr Lien Holder may payoff the Senior Lien Holder to preserve its own interst on the land.
(Sell us the mortgage and the note and we now become the lien holder of that senior lien)
2
Q
What results if Jr Lien Holder did not recieve proper notice of foreclosure action?
A
Their lien takes priority. Their lien stays on the property, they do not take proceeds from the sale, and the buyer takes the property subject to their lien.
When properly noticed, if proceeds are left, they receive it and their lien is extinguished. If there is a deficiency, they seek against the mortgagor.
