Illinois Foreclosure - Junior liens

Posted by Eric_IL on September 17, 2003 at 12:32:56:

A question to people familiar with Illinois foreclosure procedure from the investment standpoint. What happens to the junior lien if the senior lien is foreclosing? Does it get wiped out? For instance: 1st mortgage = $100,000, 2nd mortgage = $50,000. Property sold to investor for $110,000. Obviously, the 1st mortgagee gets its $100,000. Now, what happens to the 2nd lien holder? Does it get $10,000 and that's it or is it still owed the rest ($40,000) by the buyer?
I pretty much understand the whole judicial foreclosure procedure in Illinois except for this issue.

Thanks!
Eric

Follow Ups:

• Re: Illinois Foreclosure - Junior liens - Nick(Colorado) 12:47:34 09/17/03 (1)
  • Re: Illinois Foreclosure - Junior liens - Eric_IL 14:06:29 09/17/03 (0)

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: A question to people familiar with Illinois foreclosure procedure from the investment standpoint. What happens to the junior lien if the senior lien is foreclosing? Does it get wiped out? For instance: 1st mortgage = $100,000, 2nd mortgage = $50,000. Property sold to investor for $110,000. Obviously, the 1st mortgagee gets its $100,000. Now, what happens to the 2nd lien holder? Does it get $10,000 and that's it or is it still owed the rest ($40,000) by the buyer?


: I pretty much understand the whole judicial foreclosure procedure in Illinois except for this issue.





: Thanks!


: Eric








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