What happens to the second if you buy the 1st TD?


#1

What happens to the second if you buy the 1st TD?


#2

Wiped out. They no longer have any claim to the property. The loan does remain outstanding against the homeower, and the 2nd may have the right to pursue collection from the homeowner unless it was a purchase money loan.


#3

Do? you mean the current homeowner or previous homeowner?? Thanks.


#4

I meant the holder (lender) of the 2nd trust deed gets wiped out, and that the loan remains outstanding against the prior homeowner (the one who’s name is on the loan).