More details to this question:
If the home went into foreclosure, can the mortgage company of the second "unsecured" loan attempt to collect? This is in the state of Nevada, are there specific time-frames to consider?
1 ANSWER
R. Christopher Reade
The law regarding deficiency judgments on foreclosed out junior lienholders changed during the 2011 Legislative Session. For foreclosure sales occurring after July 1, 2011, a junior lienholder who has been foreclosed out (meaning had its security interest extinguished by foreclosure by a senior lienholder) must file its lawsuit within 6 months after the foreclosure sale. The statute of limitations used to be 6 years. Please note that this statute of limitations change applies only to foreclosure and not to short sale; however profound changes to short sale laws occurred also.
Answered on Jul 26th, 2012 at 1:38 PM