How long does a second mortgage company have to file...


#1

How long does a second mortgage company have to file a Notice of Default before the house goes to auction in California? I want to bid on the house and was told that if the 2nd mortgage has filed a NOD, we will have to pay the 2nd off. If they didn’t file a NOD, then do I just have to satisfy the first mortgage? Does anyone know the answer?


#2

Most 2nd’s don’t bother foreclosing in the current market. Even if they were to foreclose, it would have no impact on you if you were the successful bidder on the 1st mortgage at foreclosure auction.
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If you buy the first mortgage you will not be responsible for satisfying any junior liens in most cases. Just be sure you thorougly understand the chain of title (which loan is really 1st or 2nd).