Holding a second note

If I purchase a second trust deed on a property and the seller defaults, am I then able to foreclose on the property or just put a lien against it? Thanks MB

probably depends on what state you’re in.

If you’re holding a deed securing a mortgage in TX you can foreclose.

whether or not you want to/should would depend on the value of the property, amount of the first mortgage, whether you could expect to get paid, etc.

You could foreclose, but the 1st note/lien has priority. 1st mortgage must be satisfied before you receive any proceeds from sale of property.

Good advice from previous posts. The key will be the current property value and size of the first mortgage. However, there are note buyers who will purchase second position notes depending on the strength of the paper. Did you purchase this note?