Florida Foreclosure Process

Foreclosures, Short Sales, Tax Foreclosures
1

I have a homeowner who is also a friend of mine who recently got his home foreclosed upon. he had both a 1st and a 2nd with countrywide The 1st mortgage was sold to Bank of America several months ago, but now he is getting calls from countrywide stating that he is in default of the 2nd and that for him to be current he would have to pay X amount of dollars. I always thought that if the 1st was sold that it wipes out the second.

Does anyone know anything about this?

2

If a house goes to foreclosure auction (courthouse steps) all subordinate or junior liens are wiped off. However there are instances where the 2nd lien holder buys the first and now owns the first lienholder rights. A lot of equity is the reason for this sort of deal. Not sure if that answers your question. Sheila