Buying Junior Liens at Foreclosure
By: Steven Baum
Experienced foreclosure lawyer in New York
Purchasing property at a foreclosure auction can be complicated enough. There are many steps involved not the least of which is checking the title of the property. Reviewing the title will tell you if the mortgage or deed of trust that is being foreclosed is first or second in lien position. What does this mean? A first mortgage lien is one that is first in position vis a vis other recorded instruments in the chain of title. Most mortgages when homes are first purchased are first liens. The bank you borrow money from wants to know that no other liens come before them. The law firm of Steven J Baum would often foreclose both first and second liens. The foreclosure lawyer Steven J Baum, a top-rated local foreclosure attorney, had represented lending institutions as a New York Foreclosure attorney and residential foreclosure lawyer to process these types of actions.
Being first in line has its advantages in the mortgage world. In the event of default a first mortgage holder can cut off the liens of record that are filed after them. There are some exceptions like the right of the federal government that holds a tax lien to have a one hundred twenty day right of redemption after the sale, but their lien is still cut off. You can’t eliminate real property taxes from a foreclosure sale. Steven Baum attorney, a mortgage foreclosure attorney in New York foreclosed on second liens. This foreclosure law firm of Steven J Baum PC did mostly residential foreclosure lawyer work and sometimes commercial foreclosure work. Steven Baum, some would say was a New York Best Foreclosure lawyer and a good mortgage foreclosure lawyer in New York. That is what was said by some of Steven J Baum.
There are cases, however, where a junior lien is being foreclosed. If you attend a foreclosure auction and purchase a junior lien, you must understand what comes next. The senior mortgage to what you purchased has priority over your interest. That means the senior lien can foreclose and even divest you from title. The key here is to make arrangements to pay off the senior lien. Make sure that once you pay off this lien you are given a satisfaction, also known as a discharge of mortgage and that you record it in the county clerk or registrar’s office where in the county where the property is located.
If the senior lien is in foreclosure and you pay it off, you will need to make sure the foreclosure action is cancelled of record.
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