QUESTION
I LOST MY HOUSE TO FORECLOSER TO THE 1ST LENDER NOW THE SECOND WANTS THEIR MONEY
Asked on Oct 10th, 2012 on Foreclosures - Nevada
More details to this question:
SHOULD THE 1ST LENDER GIVE THE SECOND SOME OF THE MONEY THEY GOT WHEN Y SOLD THE HOUSE OR DO I HAVE TO COME UP WITH ALL THE MONEY.. I TRIED TO DO A MOD ON BOTH LOANS BUT THEY BOTH SAID I DID NOT MAKE ENOUGH MONEY TO DO THAT BUT THEY STILL WANT THEIR MONEY WHAT DO I DO
1 ANSWER
R. Christopher Reade
Unfortunately for you, after a foreclosure, a foreclosing lender has no duty to and will not pay off junior lienholders after the foreclosure. While in a short sale it is not uncommon for the 1st Trust Deed lender to allow some payments to juniors (to make sure that the sale proceeds), there is no leverage or basis for any payments after the foreclosure occurs.
With that being said, in regards to your Second Lender pursuing a deficiency, you should be aware that Nevada has tightened the time lines and terms for second trust deed holders to pursue their deficiency rights. You should definitely explore and understand your rights and remedies, including speaking with Counsel who is familiar to deficiency rights.
Answered on Oct 11th, 2012 at 1:27 PM